South Korea’s central bank said on Wednesday it plans to cut its benchmark interest rate further next year amid growing political uncertainties and other downside risks.

South Korea central bank says rate cut cycle could boost household debt, risky investments

The Bank of Korea will further lower the Base Rate in line with changes in economic conditions to ensure that inflation remains stable and downward pressures on growth are mitigated, while also paying attention to financial stability risks,“ the BOK said in its monetary policy report for 2025.