South Korea's central bank forecasts the country's economy to shrink one.three percent this year, a downward revision from its previous estimate of a point-two percent contraction.
This comes as the economy has been suffering due to the COVID-19 pandemic.
The Bank of Korea said private consumption isn't improving and job losses keep racking up.
It also kept South Korea's benchmark interest rate unchanged at half-a-percent.
The decision was made Thursday during the Bank of Korea's monetary policy meeting.
Policymakers have concerns the record low rate is at a point where further cuts would do more harm than good.