The Bank of Korea’s Monetary Policy Board (MPC) has cut the base interest rate by 0.25 percentage points from 2.75% to 2.50%, marking the fourth cut in seven months. This decision is aimed at stimulating consumption and investment amid weak domestic demand and unstable export conditions due to the US-initiated tariff war. However, concerns are raised that continuous rate cuts without adequate fiscal policies may only fuel real estate prices and household debt, and potentially raise the exchange rate again.
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Auto-posted at: 2025-05-29 21:01:17