South Korea unexpectedly cuts rates by 25 basis points — first back-to-back cuts since 2009

South Korea unexpectedly reduced its benchmark interest rate by 25 basis points in an effort to stimulate the economy amidst growth concerns, marking the first time the Bank of Korea has implemented consecutive cuts since 2009. This decision followed a lower-than-expected third-quarter GDP reading and a downward revision of GDP forecasts for 2024 and 2025, demonstrating the central bank’s response to deteriorating growth prospects. Morgan Stanley’s chief economist for Korea and Taiwan highlighted the significance of the rate cut in light of slowing exports and the overall challenging economic environment.

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