Bank of Korea cuts key rate, meeting market expectations

Seoul looking to manage uncertainty at home and trade tensions abroad

The Bank of Korea trimmed its benchmark interest rate by a quarter percentage point in both October and November, marking the first consecutive cuts since 2009. © Reuters

STEVEN BOROWIEC

February 25, 2025 09:57 JST

Updated on February 25, 2025 11:27 JST

SEOUL -- South Korea's central bank cut its key interest rate by one quarter of a percentage point to 2.75% on Tuesday amid projections of weak growth in Asia's fourth-largest economy.

The decision was in line with expectations. Of 36 economists polled by Reuters from Feb. 14 to Feb. 20, all but one predicted a rate decrease of 25 basis points.