Lee Chang-yong, governor of the Bank of Korea, noted during a press conference held right after the Monetary Policy Committee on the 25th, "The decision to lower the benchmark interest rate this time was unanimous among all committee members."
On that day, the Monetary Policy Committee decided to lower the benchmark interest rate to 2.75% per annum. The Bank of Korea paused after consecutive cuts in October and November of last year, but resumed the trend of cuts by lowering the rate this month.
The governor explained, "As this year's growth rate is expected to drop significantly, we have additionally lowered the benchmark interest rate to respond to the economy." The Bank of Korea has lowered its growth forecast for this year to 1.5%, down from 1.9% in November of last year, as disclosed in its 'Revised Economic Outlook' published on the same day.
The governor also said, "The deterioration of consumer sentiment since late last year is leading to actual poor indicators, and the tariff policy of the new U.S. government is negatively impacting domestic exports, leading us to judge that the economic slowdown trend will continue for the time being," adding, "We will determine the timing and pace of additional cuts based on a comprehensive assessment of inflation growth and financial stability with newly obtained data."