S.Korea cuts policy rate to all-time low of 1.75 pct

South Korea's central bank on Thursday cut its benchmark interest rate by 25 basis points to an all-time low of 1.75 percent.

It was the first time that the country's policy rate fell below 2 percent. Bank of Korea (BOK) lowered the seven-day repurchase rate by 25 basis points each in August and October last year to a record low of 2 percent.

The 2-percent interest rate was maintained when the 2008 global financial crisis hit the global economy, including South Korea.