The Bank of Korea cut interest rates by 25 basis points as scheduled, shifting its stance to neutral

ChainCatcher news, the Bank of Korea today cut the interest rate by 25 basis points, shifting from a restrictive monetary policy to a neutral stance amid growing concerns about growth. This is the third rate cut by the Bank of Korea since the beginning of the rate-cutting cycle last October, bringing South Korea's interest rates about 150 basis points lower than the Federal Reserve's target range of 4.25-4.50%.

The central bank also lowered its economic growth forecast for this year from 1.9% to 1.5%, while maintaining the inflation forecast for this year and next at 1.9%. The market reacted lukewarmly to the rate cut. With the uncertainty of U.S. policy's impact on the South Korean economy and factors such as the domestic political crisis, the market direction of interest rates may experience fluctuations, posing complex communication challenges for the Bank of Korea. The market will now turn its attention to the press conference held by Bank of Korea Governor Lee Chang-yong at 10:10 AM Beijing time, where dissenters of the policy decision may appear.