Bank of Korea surprises with 25 basis point rate cut By Reuters

SEOUL (Reuters) – South Korea’s central bank unexpectedly cut its policy interest rate for the first time in three years on Thursday, as uncertainties from a trade dispute with Japan add to growing concerns over the economy’s outlook.

The Bank of Korea announced its Monetary Policy Board voted to cut the base rate by 25 basis points to 1.50%, without elaborating, ahead of expectations in a Reuters poll that the board would lower the rate next month..

Governor Lee Ju-yeol is due to hold a news conference at 0220 GMT, where he is expected to disclose the vote result and the central bank’s revised economic growth and inflation forecasts.