Bank of Korea cuts interest rate

South Korea's interest rates are going in the opposite direction to everyone else's.

South Korea slashes key interest rate to stimulate economy
South Korea's central bank slashed its key interest rate for the first time in 13 months in a bid to stimulate the economy which has been suffering from lacklustre domestic demand.

In a move economists said signalled an end to the country's tight monetary policy, the Bank of Korea lowered its overnight inter-bank call rate target for August by a quarter point to 3.5 percent. The rate had been on hold since July last year.

The reduction, which took the markets by surprise prompting a sharp uptick in share prices, reflects growing concerns about slower growth in the world's 11th largest economy.

It's a reminder -- if one is needed -- that the world economy is not in great shape.