The Bank of Korea initiated a new easing cycle with a 25 basis point rate cut.
Korea’s central bank slashed the benchmark interest rate by a 25 basis point to 3.25 percent on Friday, delivering its first rate cut since May, 2020.
If the rates fall, it would be great to buy a house, but nothing more than that.
With housing prices in Seoul rising ever-upward, Bank of Korea Gov. Rhee Chang-yong urged against overly optimistic rate-cut speculation.
Korea's central bank froze its key rate for the 12th straight session on Thursday, holding the benchmark interest steady in its longest unchanged streak.
Bank of Korea Governor Rhee Chang-yong said financial stability must be considered when determining the country's neutral interest rate.
The Bank of Korea (BOK) upped its growth forecast for the country's economy by 0.4 percentage points to 2.5 percent on the back of strong exports. Inflation is expected to come at 2.6 percent this year, unchanged from the previous projection.
The Bank of Korea maintained its interest rate at 3.5 percent amid uncertainties about inflation and global oil prices. A rate cut could be possible starting in July.
The Bank of Korea maintained the interest rate at 3.50 percent after worse-than-expected U.S. inflation data put a damper on hopes that the Federal Reserve will begin cutting the rate in June.
Korea's inflation climbed 3.1 percent on year, with President Yoon Suk Yeol promising the stabilize prices no matter the cost with the general election fast approaching.
Korea JoongAng Daily Sitemap
