Bank of Korea Makes First Back-to-Back Rate Cut in 15 Years, Lowers Rate by 25bps to 3% Amid Trump's Re-election

Nov 28, 2024, 01:47 AM

South Korea's central bank, the Bank of Korea, unexpectedly cut its benchmark interest rate by 25 basis points to 3.00% from 3.25%, bringing the rate to its lowest since October 2022. This surprise move marks the first back-to-back rate cut in 15 years, reflecting growing concerns over economic slowdown and the impact of Donald Trump's re-election on Asia's fourth-largest economy. The decision surprised markets, which had anticipated the rate to remain unchanged at 3.25%. The Bank of Korea cited escalating trade uncertainties as a reason for the rate cut and is potentially the first global central bank to cut rates following Trump's victory.