BoK cuts key rate by 25 points amid bleaker growth outlook
South Korea’s central bank slashed its benchmark interest rate by a quarter percentage point on Tuesday in an effort to shore up economic growth amid weak domestic demand and uncertainties at home and abroad
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Seoul: South Korea’s central bank slashed its benchmark interest rate by a quarter percentage point on Tuesday in an effort to shore up economic growth amid weak domestic demand and uncertainties at home and abroad. The monetary policy committee of the Bank of Korea (BoK) cut its key rate by 25 basis points to 2.75 percent during a rate-setting meeting in Seoul. The move came a month after its rate freeze decision, which was aimed at supporting the weak local currency while assessing the impact of two rate cuts in the October and November meetings, reports Yonhap news agency. Tuesday’s decision underlined the central bank’s policy focus on economic growth as the BoK lowered its 2025 growth outlook for Asia’s fourth-largest economy to 1.5 per cent from its previous forecast of 1.9 per cent.
“Although concerns about foreign exchange markets still remain, inflation stabilisation has continued along with an ongoing slowdown in household debt, while the growth rate is forecast to decline significantly,” the BoK said in a released statement.
