South Korea's central bank cuts interest rate to 2.5% due to economic challenges

From Yahoo Finance: 2025-05-28 23:11:00

South Korea’s central bank cuts interest rate to 2.5% and slashes 2025 growth outlook to 0.8% due to U.S. tariffs and weak domestic demand. Kospi gains 1.7% as bank warns of global economic slowdown. April showed sluggish economic activity with slow job creation. Governor hints at more rate cuts but cautions against rapid adjustments due to high household debt and real estate prices. Trump’s tariff threats on foreign products, including from South Korea, could impact economy. Political instability post-martial law adds to economic challenges ahead of snap presidential election.



Read more at Yahoo Finance: South Korea’s central bank cuts borrowing costs to nurse the sluggish economy