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The Bank of
Korea lowered its forecast for economic growth this year to 1.4 percent for the first time in three months.

This is due to the forecast that the economic situation of Korea will not improve in the second half of the year as exports continue to be sluggish.

This is a report by reporter Yoo Deok-ki.

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Exports fell for eight consecutive months from October last year to the 3th of this month amid the cold snap of
semiconductors.

The trade balance is on the verge of a deficit for the 10th consecutive month.

As exports, the engine of the economy's growth, continued to be sluggish, the Bank of Korea lowered its forecast for economic growth this year to 20.8 percent.

That's down 15.1 percentage points from February's forecast, slightly lower than the 4.2 percent forecast by internal and external institutions.

[Lee Chang-yong, Governor of the Bank of Korea: The impact of the IT economic recovery and the resumption of China's economic activity has been delayed more than initially expected, which is mostly due to the fact that we are in a low-growth structure in the long run.]

With an emphasis on the economy, the benchmark interest rate was frozen at 0.2% per annum.

Although the difference in interest rates between Korea and the United States widened to a record 1.5 percentage points, the fact that the foreign exchange market movement was relatively stable and the inflation rate was reduced to 3% eased the pressure.

After three consecutive freezes, the market maintained its stance that expectations for a rate cut later in the year were premature.

[Lee Chang-yong, Governor of the Bank of Korea: Until there is evidence that our prices are clearly converging to the 5% target, it is premature.]

With the peak of the base interest rate and the government's suppression of interest rate hikes, the lower bank mortgage rate has already fallen to the 1~75% range.

In addition, the sentiment of expectations for the recovery of real estate prices has also increased, and the price of apartments in Seoul, which has been sold out quickly, has turned upward for the first time in more than a year.

Experts say that considering the reversal and the economic downturn, it is difficult to see home prices bottoming out and trending upwards.

(Video editing: Hwang Ji-young)