Bank of Korea cuts rates to lowest since August 2022 to boost sluggish growth

South Korea’s central bank cut rates by 25 basis points Tuesday to 2.75%, the lowest since August 2022, in an effort to boost a slowing economy amidst political uncertainty surrounding President Yoon Suk Yeol’s impeachment trial. The decision marks the third rate cut in four meetings, with the country’s GDP growth in the fourth quarter falling to 1.2% due to weakness in consumption and construction sectors. Despite concerns over household debt, the Bank of Korea is expected to continue easing monetary policy to support the economy and inflation, with limited negative impact on the financial industry and foreign capital flows.

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