Bank of Korea Cuts Interest Rate by 25 Basis Points to 3.25%, First Cut in Nearly Two Years

Oct 11, 2024, 01:00 AM

The Bank of Korea has reduced its benchmark interest rate by 25 basis points to 3.25%, down from the previous rate of 3.50%. This marks the first rate cut by the central bank in nearly two years. The decision aligns with market expectations and comes amid signs of cooling in local property markets and a sharp easing of inflationary pressures. The rate cut, announced on Friday, is also significant as it follows a prolonged period of monetary tightening by the Federal Reserve since March 2022. The Bank of Korea had held the rate steady for 21 months prior to this cut.