On the 29th, Bank of Korea Governor Lee Chang-yong noted during a press conference following the Monetary Policy Committee meeting that "this decision (to lower the benchmark interest rate) was unanimous among all committee members."
Governor Lee further explained, "While the increase in household debt and the possibility of heightened volatility in the foreign exchange market remain, it is appropriate to alleviate downward pressures on the economy as we expect growth rates to substantially decline while price stability continues."
The governor also stated, "The direction of future currency policy operations could see a larger potential decrease in interest rates as growth significantly weakens." He added, "There are risks on both sides and we also need to be mindful of financial stability risks, so we will decide on the pace and extent of additional cuts while monitoring the data."
On this day, the Monetary Policy Committee decided to lower the benchmark interest rate to 2.50% per annum. This marked the resumption of a cutting trend that had paused after reducing the rate by 0.25 percentage points in February. The Bank of Korea had held meetings in October and November last year, and in February this year, lowering the benchmark rate by 0.25 percentage points each time.