The Bank of Korea (BOK) has lowered its benchmark interest rate by 0.25 percentage points to 3.00%, marking the first back-to-back rate cuts since 2009.
The move aims to boost the slowing economy and address weaker-than-expected inflation.
The BOK also revised its 2024 growth forecast to 2.2%, down from 2.4%, and adjusted its inflation projection to 2.3% from 2.5%. Following the rate cut, South Korea’s treasury bond futures rose, while the won currency weakened.
This decision comes despite the IMF’s recent advice for South Korea to continue normalizing monetary policy.
The BOK remains focused on balancing economic growth, inflation control, and financial stability.
