More rate cuts to come from the Bank of Korea

The Bank of Korea cut its benchmark rate earlier:

• Bank of Korea rate cut as expected, base rate to 3.25% from 3.5%

More now from the Bank:

• The Bank of Korea will thoroughly assess trade-offs among inflation, growth, and financial stability.
• The South Korean economy is expected to continue moderate growth.
• The Bank of Korea will carefully determine the pace of further cuts to the base rate.
• Uncertainties to the growth path are higher compared to August.
• Domestic consumption recovery has been delayed.
• It is still important to remain cautious of risks such as the impact of rate cuts on household debt.
• South Korea’s 2025 inflation forecast is expected to be consistent with earlier projections.
• Oil price changes and Middle East risks add uncertainties to inflation.
• Housing prices and household debt growth are anticipated to gradually slow.
• Growth in household loans has shrunk.

Looks like more cuts ahead “will carefully determine the pace of further cuts to the base rate”.

This article was written by Eamonn Sheridan at www.forexlive.com.