South Korea's central bank has announced a second consecutive cut to its key policy rate in response to a slowing economy. The Bank of Korea reduced its benchmark interest rate by a quarter percentage point to 3% following a meeting of monetary policymakers. This decision comes as the bank revised its economic growth forecast downward, from 2.4% to 2.2% for 2024 and from 2.1% to 1.9% for 2025.
This latest rate cut marks the second time in as many months that the bank has taken steps to lower borrowing costs and increase the money supply. Despite concerns about high inflation and rising household debt levels, the bank is aiming to stimulate economic growth in the face of a challenging economic environment.
