South Korea’s central bank cuts interest rates to boost economy and exports



Analysis South Korea’s central bank cuts interest rates to boost economy and exports Bank of Korea’s rate cut aims to ease financial pressure, but rising household debt and inflation risks persist John LeeOctober 11, 2024 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON Bank of Korea, July 26, 2024 \| Image: Korea Pro The Bank of Korea (BOK) cut its benchmark interest rate on Friday by 0.25 percentage points, lowering the rate to 3.25% in its first rate cut in over three years. While the move aims to support South Korea’s sluggish domestic economy and boost exports, it comes with a set of risks related to financial stability, inflation and the housing market. The Bank of Korea (BOK) cut its benchmark interest rate on Friday by 0.25 percentage points, lowering the rate to 3.25% in its first rate cut in over three years. While the move aims to support South Korea’s sluggish domestic economy and boost exports, it comes with a set of risks related to financial stability, inflation and the housing market. Get 30 days of free access to KoreaPro Full access to all analysis The KOREA PRO newsletter, every business day Daily analysis on the top story of the day The ability to suggest topics for coverage by our specialist team Be smart about South Korea Get full access to expert analysis and opinion. Start now No charges during your trial. Cancel anytime. A paid subscription will start after 30 days. © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. Get the Daily Briefing Start your day with the South Korea stories that matter most – as selected by And how should we address you in correspondence? One more step! Please check your inbox, for an email we just sent you, and click on the confirmation message in it to get subscribed to our Daily Briefing. LATEST ANALYSIS 01Ukraine’s arms request puts South Korea in a diplomatic and logistical dilemma 02South Korea’s bid to overhaul corporate governance faces key enforcement hurdles 03Yoon and South Korea’s opposition pivot on policy, eyeing political center 04South Korea leverages climate deals abroad but faces environmental scrutiny 05Why South Korea’s ambitious plan to phase out coal faces serious headwinds 06South Korea-Japan dispute over Sado mine casts shadow over bilateral ties 07Seeking new markets, South Korea sets sights on defense deals with Latin America 08South Korea’s women-only universities weigh co-education as enrollments decline

Analysis

South Korea’s central bank cuts interest rates to boost economy and exports

Bank of Korea’s rate cut aims to ease financial pressure, but rising household debt and inflation risks persist

John LeeOctober 11, 2024

South Korea’s central bank cuts interest rates to boost economy and exports

Bank of Korea, July 26, 2024 | Image: Korea Pro

The Bank of Korea (BOK) cut its benchmark interest rate on Friday by 0.25 percentage points, lowering the rate to 3.25% in its first rate cut in over three years.

While the move aims to support South Korea’s sluggish domestic economy and boost exports, it comes with a set of risks related to financial stability, inflation and the housing market.

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South Korea’s central bank cuts interest rates to boost economy and exports

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John Lee

South Korea’s central bank cuts interest rates to boost economy and exports

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