BoK to revisit growth forecasts

SEOUL: South Korea´s central bank governor said on Tuesday he will revisit economic growth forecasts in July as the domestic outlook has become clouded by the US-China trade spat and weak job growth.

"Uncertainties are high, and there are a number of factors to be monitored, so we will thoroughly review domestic economic situation once again, which is to be released in July," Lee Ju-yeol told reporters in a scheduled press conference in Seoul.

Lee said commercial conflict between the world´s two super powers could have a sizeable impact on Asia´s fourth largest economy, which may warrant the Bank of Korea to revise its current 3 percent growth outlook.

U.S. President Donald Trump threatened on Monday to levy tariffs on nearly all of China´s shipments to his country after China vowed to implement retaliatory tariffs on $50 billion worth of U.S. exports to China. Lee also stressed tepid job growth seen in April and May marked by a significant decline in full-time employment underperforms the bank´s initial forecasts, although he sees the economy to continue its solid, overall growth trajectory.

The dovish comments follow the BOK´s decision at its May meeting to hold its base rate steady at 1.5 percent.

The bank´s next interest rate decision will be held on July 12.South Korea added 72,000 jobs in May from a year earlier, well below the 123,000 jobs created in April over a year earlier and marking the weakest increase in more than 8 years.