The minutes of South Korea’s monetary policy board’s meeting on November 28th, according to minutes released on Tuesday ( Dec 17 ), indicated that a need to respond quickly and preemptively to a sluggish economy.
One member argued that it is more essential at this time to prevent the economy from underperforming.
There is a crucial need for fast and flexible plan cooperation with fiscal policy, the participant said,” As price cuts alone will be insufficient to control the risks at side.”
Another member remarked that economic policy should carefully consider the nature and extent of financial shocks and respond to them quickly and freely given the increased domestic and global uncertainties.
Next month, the Bank of Korea’s board members voted 5-2 to lower interest rates by 25 basis points to 3.00 per share, which was the first back-to-back rate cut since 2009 and against market expectations for a hold.
Board people who disagreed with the selection said it was preferable to first assess the impact of Donald Trump’s victory in the US presidential election and the market response before acting.
South Korea’s economic growth is expected to decrease to 1.9 per share in 2025 and 1.8 per cent in 2026, from 2.2 per cent in 2024, according to the main company’s latest projections.