FX.co ★ South Korea Cuts Key Rate as Expected

The Bank of Korea (BoK) reduced its base rate by 25 basis points to 2.50% in its May 2025 meeting, following a pause on rate changes in April. This decision was made in response to the economy's contraction in the first quarter of 2025, alongside a decrease in inflation, aligning with market forecasts. This adjustment brings borrowing costs to their lowest point since September 2022, demonstrating efforts to invigorate GDP growth and mitigate the possible effects of a global economic deceleration.