BOK May Lower Interest Rates

The Bank of Korea has been under mounting pressure to pep up the economy, which has been suffering from unfavorable conditions at home and abroad.

As of last month, exports had plunged for over a year, while key indicators of domestic demand such as retail sales and facilities investment also dropped in January.

"There is a chance for a rate cut in March," a spokesman of the central bank said ahead of its monthly monetary policy meeting on Thursday. "Combined exports from January and February were down 15 percent, and in general, sentiment is at a record low, excluding the global financial crisis in the late 2000s."

Negative interest rates introduced in Japan and the European Union have fueled expectations that Korea will also lower its key rate, which already stands at a historic low of 1.5 percent. But some economists say a rate cut should not be seen as a cure-all.