The Bank of Korea is widely expected to lower its benchmark interest rate Thursday, just days ahead of a pivotal presidential election, as the central bank steps up its efforts to shield a sputtering economy from risks stemming largely from Donald Trump’s tariffs.
All 21 economists surveyed by Bloomberg see the central bank cutting borrowing costs for the second time this year by a quarter-percentage point to 2.5%. In April, Governor Rhee Chang-yong said all six board members were open to lowering the rate within three months, an early signal that action would likely take place at the May meeting. The bank is also expected to cut its growth forecasts again as Trump’s levies cast a shadow over the economic outlook.
