Bank of Korea to cut rates two more times in 2025: BofA

Published 14/07/2025, 10:44
Bank of Korea to cut rates two more times in 2025: BofA

Investing.com - The Bank of Korea (BOK) maintained its monetary policy rate at 2.50% during its meeting on July 10, continuing its steady stance on interest rates.

BofA economists Benson Wu and Ting Him Ho forecast that the Korean central bank will likely implement two rate cuts in the second half of 2025 as their base scenario for monetary policy adjustments.

The economists noted that an earlier rate cut remains possible, specifically stating that if housing prices in Seoul and surrounding regions stabilize in the coming weeks, a rate reduction could occur as soon as the August meeting.

Financial markets are currently pricing in approximately 11 basis points of cumulative rate cuts for the remainder of 2024, indicating expectations for modest monetary easing before year-end.

The central bank’s decision comes as policymakers continue to balance economic growth considerations against other factors including housing market stability in the capital region.

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