SEOUL, Oct 2: South Korea’s central bank said on Tuesday it would focus its monetary policy on boosting economic growth, raising prospects of an interest rate cut as new data pointed to a deepening manufacturing slump.

The Bank of Korea “plans to operate the rate policy to ensure that the economy recovers its potential level of growth”, the bank said in its biannual monetary policy report. South Korea’s export-driven economy has faltered in recent months, as the global economic downturn — and in particular the crisis in the eurozone — has hit overseas shipments.

Korean exports fell year-on-year for the third consecutive month in September while manufacturing activity in the same month contracted at the sharpest rate for nearly four years.

The HSBC Purchasing Managers’ Index for September — released on Tuesday — stood at a seasonally adjusted 45.7 in September, compared with 47.5 the previous month.—AFP