The BOK lowered its growth projection for 2025 below 2%, a factor that may have prompted the unexpected move. The central bank now sees the economy expanding 1.9% next year compared with a 2.1% projection in August.
The Bank of Korea surprised investors by cutting its benchmark interest rate Thursday after delivering gloomier growth forecasts in a back-to-back move following its policy pivot last month.
The central bank lowered its seven-day repurchase rate by a quarter-percentage point to 3% in a possible early response to growing trade and economic concerns following Donald Trump’s presidential election.
