South Korea cuts interest rates

The central bank has cut rates for a third time this year

South Korea's central bank has lowered its key interest rate by 0.25% in an effort to boost the economy, as exports and industrial production slump.

The rate cut, to 4.5%, was the third this year. It came as data showed inflation had eased slightly in July.

Exports fell a record 20% in July from a year earlier, and factory production fell in June for the third month.

"There is concern that the economic slowdown may be more serious than had been anticipated due to the worsening of the global economy," the Bank of Korea (BOK) said in a statement.

A recession in the global hi-tech industry, especially in the US, was blamed for the country's declining industrial output growth and exports as demand dries up, the BOK said.

The central bank had earlier forecast that the economy would begin to recover as early as this quarter.

The BOK reduced interest rates by a quarter of one percent in February and July this year before the latest cut.