South Korea’s central bank cuts key interest rate to nurse a slower economy

Associated Press

SEOUL, South Korea (AP) — South Korea’s central bank has lowered its key policy rate and says the country’s economy will grow at a slower pace than it initially anticipated. The Bank of Korea cut its benchmark interest rate by a quarter percentage point to 3% after policymakers met Thursday. The bank lowered its outlook for the country’s economic growth to 2.2% from 2.4% for this year and to 1.9% from 2.1% for 2025. It was the second straight month that the bank took steps to lower borrowing costs, despite the lingering effects of high inflation and alarming levels of household debt, as economic growth falters.