South Korea joins global easing cycle
Government efforts to cool housing prices create opportunity for central bank to cut rates by 25bp
South Korea’s central bank cut its policy rate by 25 basis points to 3.25% today (October 11) as inflation continued to slow and the country’s housing market exhibited signs of cooling.
This was the first cut in almost two years, with the Bank of Korea (BoK) having previously maintained the policy rate at 3.5% since January 2023.
In a statement, the bank’s monetary policy committee (MPC) said inflation had shown a “clear trend of stabilisation”.
Official statistics show that year-on-year headline
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