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2025-07-29 15:49:43
【Minutes of the Bank of Korea meeting: Most members believe that further rate cuts are necessary】 The minutes of the meeting released on Tuesday showed that the members of the Bank of Korea said at the policy meeting on July 10 that a rate cut was needed, and pointed out that the US-South Korea trade negotiations were a key consideration in determining the pace and timing of subsequent rate cuts. Although the Bank of Korea kept the benchmark interest rate unchanged at 2.50% at this meeting, most members hinted that they would cut interest rates again in the next three months, while warning that the US tariff policy brought "significant" economic uncertainty. One member said: "Especially due to the trade negotiations with the United States, the uncertainty about the future economic growth trajectory remains very high," and advocated that the central bank should maintain an accommodative policy stance to support weak economic growth. Another member echoed that "it is time to consider another rate cut," and another member said that "there is still a need to lower the benchmark interest rate." The members pointed out that the progress of the US-South Korea trade negotiations is a key factor in the future policy path. South Korean officials are currently striving to reach an agreement to reduce tariffs. South Korean Finance Minister Koo Yoon-chul said on Tuesday that he would seek to reach a mutually beneficial trade agreement when he met with US Treasury Secretary Scott Bessant this week. South Korea is working to avoid punitive tariffs from the United States as the tariff exemption deadline approaches on August 1.
