Skip to content
Economics
Central Banks

Economists See Earlier Rate Cut by Bank of Korea as Risks Rise

  • Bank likely to bring rate from 3.5% to 3.25% in fourth quarter
  • Plunging exports, worsening property market among risks
Customers walk through Jeonju New Joongang Market in Jeonju, North Jeolla Province, South Korea.

Customers walk through Jeonju New Joongang Market in Jeonju, North Jeolla Province, South Korea.

Photographer: SeongJoon Cho/Bloomberg
By

The Bank of Korea will cut its benchmark interest rate earlier than previously expected, a Bloomberg survey shows, reflecting growing concerns over the outlook for economic growth.

The seven-day repurchase rate, currently at 3.5%, will probably be lowered to 3.25% during the last three months of this year, according to the latest median estimates by private economists. That’s one quarter earlier than last month’s survey.