People passed through the Korea Exchange (KRX) building in Seoul, South Korea on December 9, 2024.
Daniel Ceng | Anadolu | Getty Images
South Korea Central Bank cuts prices It has worked hard to stimulate the slowdown at 25 basis points on Tuesday since August 2022.
South Korea’s banks cut the ratio from 3% to 2.75%, in line with expectations from economists voted by Reuters, revising the rate for the third time in four meetings.
This decision was brought up by this as South Korea continues to struggle with the political uncertainty of President Yoon Suk Yeol’s impeachment trial.
The country’s constitutional court will Calling the last hearing of Yoon impeachment trial According to domestic media reports.
After the decision, the country’s benchmark KOSPI stock index fell 0.46%, while the Koreans won 0.2% of trade, against the dollar at $1,431.3.
Citi said in a report earlier this month that as inflation remains stable, BOK can favor economic growth over the risk of financial imbalances. And Korean Inflation in January Climbing to a six-month high of 2.2%, still close to the BOK’s target of 2%.
South Korea’s GDP Fourth quarter growth According to advance estimates, missed expectations are in the slowest expansion period in the sixth quarter. BOK attributes the slowdown to weakness in the consumer and construction sectors.
According to Citi, the expansion of interest rates between the US dollar and South Korean won did not see meaningful bond capital outflows. flow.
Min Joo Kang, a senior economist at South Korea and Japan, said in a report last week that political turmoil in Seoul has triggered weaknesses in the excessive weakness of South Korean winners.
She also said inflation will remain within the BOK’s 2% target this year, which will make the Trump administration’s reciprocal tariff threats even greater.
However, Kang warned that lowering tax rates could accelerate the rise in household debt and real estate prices.
