S Korea slashes 2015 growth, inflation forecasts

South Korea's central bank on Thursday slashed its 2015 economic growth forecast for the second time this year and predicted annual inflation would drop below the 1.0 percent mark.

The monthly monetary meeting of the Bank of Korea (BOK) also left its benchmark interest rate unchanged for April, following a surprise 25 basis point reduction the previous month.

The growth forecast had already been lowered in January from 3.9 percent to 3.4 percent, but the bank said Thursday it was now estimating growth for the year at 3.1 percent.

It also said annual inflation was likely to come in at just 0.9 percent, compared to the bank's earlier forecast of 1.9 percent. "Economic recovery has been slower than expected," BOK governor Lee Ju-Yeol told reporters.

Lee said exports remained sluggish while consumption had largely failed to respond to the low interest rate and other steps to boost growth.