The Bank of Korea broke market expectations and cut its benchmark interest rate twice in a row. This is the first time in 15 years that interest rates have been lowered in succession. In a situation where both exports and domestic demand are sluggish, we have taken action to prevent a further economic downturn.
As China, which was once the largest export market, is increasing its influence in Korea’s main export items such as steel, chemicals, and semiconductors, Korea’s imports of intermediate goods are increasing.
In addition, uncertainty, such as the strengthening of protectionist policies following Trump’s re-election, has added to the downside risk to the economy.
This is the first time in 15 years since the 2009 financial crisis that the base interest rate has been lowered in succession without a freeze.
Original text:
https://v.daum.net/v/20241129063607800
