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The meeting minutes at the end of May show that the Bank of Korea will cautiously lower interest rates.
On Tuesday, the minutes of the Bank of Korea's May 29 policy meeting showed that central bank officials said that it is necessary to continue to ease monetary policy to support economic growth, but it is necessary to deal with related risks cautiously. One official "stressed the importance of assessing the risks associated with further rate cuts and adjusting the pace of rate cuts accordingly," citing the volatility of house prices.
Another official agreed, stating that "there is a need to formulate a carefully calibrated policy mix that combines ongoing monetary easing with targeted fiscal and financial measures aimed at supporting vulnerable sectors."
Officials pointed out that when determining the extent of further interest rate cuts, changes in U.S. tariff policy and monetary policy adjustments should be considered, as well as domestic economic policies after the new government takes office.
Source: Reuters