Korea Bank has reduced prices to the lowest level since August 2022 to enhance slow growth

South Korea Central bank rates reduce By 25 basis points on Tuesday to its lowest level since August 2022, as it strives to stimulate the slow economy.

Korea Bank reduced 2.75 % of 3 %, walking with expectations from Economists included in Reuters, reducing rates for the third time in four meetings.

The decision comes at a time when South Korea continues to deal with political uncertainty about President Yun Suk Yol’s trial.

The country’s constitutional court will Holding the final hearing session for the trial of distraction Tuesday, according to the local media.

Immediately after the decision, the country’s normative KOSPI stock index decreased by 0.46 %, while South Korea won 0.2 % to trade at 1,431.3 against the US dollar.

Citi said in a note earlier this month that BOK could prefer economic growth over the risk of financial defects because inflation is still fixed. While South Korea Inflation in January It rose to the highest level in six months by 2.2 %, still close to the 2 % BOK goal.

South Korea GDP Growth in the fourth quarter The missed expectations, put its slower expansion in six quarters by 1.2 %, according to progress estimates. Bok attributed the slowdown to the weakness of consumption and construction sectors.

The expansion of the average rate between the US dollar Won, South Korea has not witnessed a significant flow of boxes, according to City, who sees a “limited negative impact” of the weakness in South Korea in the country’s financial industry and foreign capital flows.

Mina Joe Kang, South Korea and Japan’s chief economist in Engy, said in a memorandum last week that political turmoil in Seoul, which sparked excessive weakness in the victory of South Korea.

She also said that inflation will remain within the target range of 2 % of BOK this year, which will give it more space to reduce prices amid mutual tariff threats from the Trump administration.

However, Kang warned the price cuts against the rise in the debts of local families and real estate prices.