Seoul: South Korea's central bank slashed its benchmark interest rate by a quarter percentage point on Tuesday in an effort to shore up economic growth amid weak domestic demand and uncertainties at home and abroad. The monetary policy committee of the Bank of Korea (BOK) cut its key rate by 25 basis points to 2.75 percent during a rate-setting meeting in Seoul.
According to Yonhap News Agency, the move came a month after its rate freeze decision, which was aimed at supporting the weak local currency while assessing the impact of two rate cuts in the October and November meetings. Tuesday's decision underlined the central bank's policy focus on economic growth as it lowered its 2025 growth outlook for Asia's fourth-largest economy to 1.5 percent from its previous forecast of 1.9 percent.