The Bank of Korea has initiated the fourth interest rate cut of the year in response to economic downturn, lowering the benchmark interest rate to 2.5%.

According to the Wise Finance APP, the Bank of Korea announced on Thursday that it will cut the benchmark interest rate by 25 basis points to 2.5%, marking the fourth rate cut since the start of the easing cycle in October last year. The size of this interest rate cut is in line with market expectations, with all 21 surveyed institutions' economists making the same prediction. In addition, the central bank also lowered its 2025 economic growth forecast from 1.5% to 0.8%, reflecting increased downward pressure on the economy.