World News Channel Asia

The Central bank in South Korea had cut its key interest rate to 4.25 from 5% in an attempt to boost the country’s economy. South Korea’s stock market also closed with an unprecedented a high gains for the first time in several days.

South Korea is one of the biggest economies in Asia, and it is the second time in the history of the country that interest rates would be cut to improve the situation of the economy. The highest bank in the country had declared that the interest rate cut was needed to guard securely against the possibility of a sharp contraction of real economic activity. The bank also forecast the possibility of lowering interest rates further.

Oil prices have continued to fall on Monday 27th of October despite the preceding week’s 1.5 million per barrel-a-day cut in production from oil producers’ cartel OPEC. US light sweet crude for delivery in December dropped to a 17-month low of $61.30 a barrel before recovering somewhat to trade at $62.42. London Brent crude oil also fell below $60 a barrel before recovering to trade at $61.32 a barrel. Oil prices in Asian countries also fell by the same margin. The fall in oil prices have been attributed to the unrest in the middle east as well as recent global economic slow down.

Asian countries though do not produce the bulk of oil needed globally but they consume oil more than any other continent of the world. The ever increasing prices of oil is greatly affecting large companies in China, India, and Korea as well as some other poor nations.