Breaking
[Breaking] Bank of Korea cuts interest rate by 0.25%p... from 3.0% to 2.75% annually
Summary
- The Bank of Korea announced a 0.25 percentage point reduction in the base rate from 3.0% to 2.75% annually.
- This rate cut was reported to be a decision considering the risk of declining growth rate and the stabilizing won-dollar exchange rate.
- It was emphasized that the rate cut policy that began last year has now reduced rates by 0.75 percentage points over three occasions.
The Bank of Korea decided to lower the base rate by 0.25 percentage points from 3.0% to 2.75% annually on the 25th.
The BOK made this decision at the Monetary Policy Committee meeting held at the BOK headquarters in Namdaemun-ro, Seoul this morning. It is understood that they moved to stimulate the economy, seeing a significant risk of declining growth rates. The recent drop in the won-dollar exchange rate to the 1420-1430 won range is also believed to have supported this decision.
Since starting its pivot (policy shift) last October by lowering the base rate from 3.5% to 3.25% annually, the BOK has cut rates by 0.75 percentage points over three occasions, including November and this month.
This is the first time the base rate has dropped to 2.75% annually since October 2022, when it was raised by a big step from 2.5% to 3.0% annually.
Reporter Jinkyu Kang josep@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
