Minutes from the Bank of Korea’s (BOK) April 17 meeting suggest that an interest rate cut is likely in May. Despite keeping the benchmark interest rate at 2.75% in April, the seven-member board highlighted growing economic challenges and the need for monetary easing to address mounting risks. The central bank is increasingly concerned that South Korea’s economic outlook is weaker than expected, prompting a shift toward preemptive action.
Board members noted that the country’s economic growth is falling behind previous forecasts due to a global slowdown and escalating trade tensions. As a result, the BOK is considering further rate cuts to stimulate growth and support the struggling economy.
Economists expect the BOK to lower the interest rate to 2.25% by the end of the third quarter of 2025. This prediction aligns with the bank’s assessment that the ongoing trade policies of major economies, especially the United States, are creating significant challenges for South Korea’s export-driven economy.
The BOK will hold its next monetary policy review on May 29, 2025. Investors and analysts will closely monitor the decision, as any rate change could have a major impact on South Korea’s economic performance and financial markets.
