Bank of Korea signals possible rate cuts

Most Bank of Korea members believe South Korea’s economic headwinds are worsening faster than expected, according to minutes from last month’s meeting, signalling the potential need for further interest rate cuts.

“With economic growth this year expected to fall short of previous forecasts due to the economic slowdown, the need for preemptive interest rate cuts is growing,” one of the seven board members said, according to the minutes from the bank’s April 17 rate review.

On April 17, the BOK’s board of seven members maintained the benchmark interest rate at 2.75 per cent as anticipated during its monetary policy review.

The board also indicated plans to lower rates in May to address the substantial economic risks posed by US President Donald Trump’s tariff policy.

Attribution: Reuters

Subediting: M. S. Salama