Bank of Korea Hints at 2 More Rate Cuts in 2025

Seoul, March 13 (QNA) - The South Korean central bank on Thursday hinted at up to two additional interest rate cuts this year in an effort to spur economic growth.

The Bank of Korea (BOK) made the suggestion in its latest monetary policy report, noting the policy focus will be on how to ease downside pressure on economic growth amid stable prices, according to South Korea's (Yonhap) news agency.

Late last month, the BOK lowered its policy rate by a quarter-percentage point to 2.75 percent, which marked the third reduction in the current monetary easing cycle after the policy pivot in October.

"It is appropriate to put our monetary policy focus on alleviating downward pressure on the economy given the forecast for low economic growth for the time being," the BOK said.

"But the timing and the pace of further rate reductions will be decided after closely monitoring household debts, housing prices, the foreign currency exchange rate and other conditions related to financial stability," it added.

In its latest forecast announced last month, the BOK presented a 1.5 percent on-year expansion of the South Korean economy for 2025, down 0.4 percentage point from its previous projection. (QNA)