Since 2009, South Korea has made its first back-to-back rate cuts of 25 basis points.
On Thursday, South Korea unexpectedly reduced its key interest rate by 25 basis points to 3%, in an effort to stimulate its sluggish economy.
Reuters polled economists and they estimated the bank would keep rates at 3.25%.
The BOK has enacted two back-to-back cuts since 2009, with a 25 bps cut in its last meeting in October.
The South Korean stock index fell 0.37% to 1,393.82 against the U.S. dollar, while the Kospi index rose 0.18%.
The GDP reading in the third quarter was weaker than expected, leading to a rate cut in South Korea.
Reuters reported that BOK lowered its GDP forecast for 2024 to 2.2% from 2.4% in August, and also cut the full-year growth outlook for 2025 to 1.9% from 2.1%.
The rate of inflation in the country has decreased significantly, reaching 1.3% in October, which is the lowest reading since February 2021.
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Asia: Business
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