South Korea's central bank cuts a key rate to nurse a slower economy

The Bank of Korea in Seoul, South Korea, lowered its key policy rate for the second consecutive month, reducing it to 3%, and revised its economic growth forecast downwards for 2024 and 2025. Despite concerns about inflation and household debt levels, the bank aims to stimulate the economy through rate cuts and increased money supply, as it faces uncertainties in global economic trends and trade policies under the new U.S. government led by Donald Trump. The country’s economy is experiencing a slowdown in domestic consumption, declining exports, and weakened employment, prompting the bank to anticipate a challenging road ahead for economic recovery.

Full Article