Anchor: The Bank of Korea(BOK) has slashed its growth outlook for 2025 to zero-point-eight percent amid fears of a steep economic slowdown. To shore up the economy at a time of sluggish growth and declining exports, the central bank also decided to cut its key interest rate by 25 basis points.
Our Curtis Carney has more.

Report: The nation’s central bank has cut its key interest rate for the fourth time since October last year. 

On Thursday the Bank of Korea(BOK) lowered its benchmark rate to two-point-five percent as it brought the country’s 2025 growth outlook into line with market expectations by reducing it to zero-point-eight percent.

The rate cut, the second this year, followed a rate-setting meeting by the Bank of Korea’s(BOK) Monetary Policy Board, which issued a statement shortly after the decision explaining that it aims to ease downward pressure on the economy. 

The revised growth outlook is a point-seven percentage point lower than the BOK’s February forecast.

It marks a sharp downgrade from previous projections of a two-point-three percent growth in November 2023, one-point-nine percent in November 2024 and one-point-five percent last February.

The revised figure is also lower than projections from the OECD and the Asian Development Bank, both of which stand at one-point-five percent, and the one percent forecast by the International Monetary Fund.

Earlier this month, the Korea Development Institute halved its 2025 growth forecast for the domestic economy to zero-point-eight percent, matching the average assessment from eight major overseas investment banks, citing ongoing global trade disputes and sluggish exports.

The central bank forecast a sluggish recovery of domestic demand and further declines in exports due to ongoing U.S. tariffs as well as uncertainty surrounding global trade negotiations, government stimulus measures and monetary policy in major economies.

After Thursday’s decision, BOK Gov. Rhee Chang-yong said future rate cuts could be even more extensive than before. 
Curtis Carney, KBS World Radio News.