Bank of Korea Cuts Interest Rates to Stimulate Economy

South Korea's central bank lowers its benchmark rate for the first time in over two years amid slowing inflation and economic growth concerns.

South Korea's central bank reduced its policy rate by 25 basis points to 3.25%, marking its first rate cut since early 2023.
The decision aligns with economists' expectations and reflects a shift towards easing monetary policy as global peers do the same.
Inflation in South Korea has decreased to its lowest level in over three years, providing room for the Bank of Korea to lower rates.
The country's economic growth has been sluggish, with domestic demand recovering slowly and the economy contracting in the second quarter.
Analysts predict further rate cuts in the coming months, potentially bringing the benchmark rate down to 2.5% by mid-2025.