( 123 rf ) Korea may choose to cut the policy interest rate further from the current record - low level in an effort to maximize the effect of its recently - announced stimulus package , some foreign investment banks predicted . According to the Korea Center for International Finance , JPMorgan and BNP Paribas noted the possibility of a fiscal - monetary policy mix in Korea in their recent analyst notes on the Korean Finance Ministry ’ s additional public spending plan .   Citing the need to cushion risks from corporate restructuring , the ministry unveiled an economic stimulus package of at least 20 trillion won ( $ 17 . 1 billion ) , including a 10 trillion won extra budget . “ JPMorgan and BNP Paribas , describing the spending ’ s size as medium , predicted that the Bank of Korea may seek to support the measure with an additional monetary easing , ” said the Seoul - based KCIF , which monitors global financial markets and players . The Bank of Korea in June ended a year - long hiatus in its monetary easing cycle , slashing the seven - day repurchase rate to a record - low 1 . 25 percent . The Finance Ministry , announcing the stimulus plan , reduced the country ’ s economic growth outlook for 2016 to 2 . 8 percent from 3 . 1 percent and cut its inflation projection to 1 . 1 percent from 1 . 5 percent . Morgan Stanley , while calling for more action to counter low growth and low inflation , said that the stimulus measures would lift Korea ’ s growth rate by 0 . 3 - 0 . 4 percentage point . Citi estimated the increase to between 0 . 2 and 0 . 3 percentage point . Japan ’ s Nomura expected Korea ’ s policy rate to be cut twice more this year . “ The rate may come down to 0 . 75 percent through two 25 basis point reductions , ” Nomura economist Kwon Young - sun told reporters in Seoul . He said the Japanese financial group has slashed Korea ’ s growth forecast for 2016 by 0 . 3 percentage point to 2 . 2 percent . By Lee Sun - young ( milaya @ heraldcorp . com ) <ⓒ KoreaHerald ( www . koreaherald . com ) 무단 전재 및 재 배포 금지 >