Citigroup: The Bank of Korea may cut interest rates faster and more significantly

ChainCatcher news, Citigroup economist Jin-Wook Kim stated in a report that the Bank of Korea may cut interest rates more quickly and more significantly to address weaker-than-expected economic growth. Kim indicated that the Bank of Korea is expected to lower rates by 25 basis points in January, April, and July of 2025.

Previously, the Bank of Korea lowered the benchmark interest rate from 3.50% to 3.25% on October 11, initiating an easing monetary policy. This was one month earlier than Citigroup's previous forecast, Kim added. He pointed out that the central bank may also cut rates twice more in 2026—possibly in January and July—bringing the policy rate down to 2.00%, below Citigroup's earlier forecast of 2.50%.