The Bank of Korea (BOK) published its March 2025 Monetary and Credit Policy Reporton Thursday, assessing South Korea’s financial conditions as neutral and signaling that further rate cuts are possible this year. The BOK introduced a new Financial Conditions Index (FCI-G)*, which measures the cumulative impact of financial variables on the GDP gap, alongside the existing FCI. The FCI-G shows that financial conditions are now mildly accommodative, even though the traditional FCI remains slightly tight. The BOK noted that financial easing since the start of the year has been driven by falling short-term rates and a rebound in stock