BoK makes surprise 25bp cut to base rate
Majority of monetary policy board decides risks to growth warrant loosening in policy
The Bank of Korea today (November 28) said it was cutting its policy rate by 25 basis points to 3%.
In a press conference, the bank’s governor Rhee Chang-yong said the decision had been finely balanced, with two of the monetary policy board’s seven members voting to maintain the base rate at 3.25%.
He said that although inflation had continued to stabilise, increasing downward pressure on growth meant a cut was necessary to “mitigate downside risks to the economy”.
Rhee said that although domestic
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