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ANZ analysts note that the Bank of Korea (BoK) lowered its policy rate by 25bps to 1.25% today, as widely expected, marking the second cut in the current easing cycle and matching its record low.

Key Quotes

“The decision was not unanimous, with two board members calling for a hold.”

“While the central bank has kept the door to further easing open, it also signalled that it wanted to assess the impact of the rate cuts so far.”

“In our view, the hurdle for each additional rate cut will be higher, given the BoK’s limited policy space.”

“Unless growth fails to stabilise as per our expectations, we think today’s cut marks the end of the BoK’s current easing cycle.”