Overview

• Bank of Korea cuts policy rate by 25 basis points to 2.5%, marking its fourth reduction in the current easing cycle.
• The move brings the benchmark rate to its lowest level since August 2022 as inflation cooled.
• Policymakers cited elevated political uncertainty following former President Yoon Suk Yeol’s December martial law attempt.
• Seoul is under pressure to secure a tariff deal with the U.S. by the July 8 deadline after reciprocal levies were suspended for 90 days.
• A Reuters poll showed economists widely expected this quarter-point move as growth concerns mounted.