Bank of Korea cuts interest rates to stimulate economy

The Bank of Korea (BOK) lowered its benchmark interest rate by 25 basis points from 3.25 per cent to 3.00 per cent on Thursday to mitigate downside risks to the economy.

The BOK’s Monetary Policy Board has decided to lower the interest rate on programmes under the Bank Intermediated Lending Support Facility from 1.75 per cent to 1.50 per cent, effective November 28, 2024.

Forecasts

The BOK revised down its GDP forecast for 2024 to 2.2 per cent from 2.4 per cent previously projected in August. The 2025 full-year growth outlook was also reduced to 1.9 per cent from 2.1 per cent.

“Nevertheless, the future path of economic growth is subject to high uncertainties related to changes in the trade environment, trends in IT exports, and the pace of recovery in domestic demand,” the BOK statement read.

Attribution: The Bank of Korea report

Subediting: Y.Yasser