Seoul, Dec 25 (IANS) South Korea’s central bank said Wednesday it plans to cut its benchmark interest rate further next year due to growing political uncertainties and other downside risks.
In its monetary policy report for 2025, the Bank of Korea (BOK) said it will make additional rate reductions to maintain the moderating pace of growth in inflation, as well as mitigate downside risks to the economy, Yonhap news agency reported.
“The BOK will take increased political uncertainties, tougher competition (with global rivals) in (the country’s) major industries and expected changes in the global trading markets into account when making rate decisions,” the BOK said in the report.
The central bank will strengthen its early warning function to avoid any volatility in the financial markets amid uncertainties involving geopolitical risks and economic policies in the new Donald Trump administration, it said.
The bank also vowed to implement market stabilisation measures at the right time if needed.
Last month, the BOK unexpectedly slashed its policy rate for the second time in a row to help prop up the economy.
The bank cut its key rate by 25 basis points to 3 per cent, marking the first back-to-back rate reduction since February 2009, when the country was reeling from the aftermath of the global financial crisis the previous year.
In October, it cut the rate by 25 basis points to 3.25 per cent, the first pivot in more than three years.
Consumer prices, a key gauge of inflation, slowed to the lowest level in 45 months in October by rising 1.3 per cent from a year earlier, staying below 2 per cent for the second consecutive month.
–IANS
int/rs
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
