Bank of Korea makes 25bp cut and lowers GDP forecast again
Central bank hints at further easing as weak domestic recovery and US tariffs dim growth outlook
The Bank of Korea has resumed its easing cycle and lowered its growth forecast after the country’s economy contracted in the first quarter of this year.
In a statement today (May 29), the BoK’s monetary policy board said it had reduced the base rate by 25 basis points to 2.5% in a unanimous decision.
“Although concerns about household debt growth and an increase in volatility of foreign exchange markets still persist, the economic growth rate is forecast to decline considerably, while the
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