BOK slashes key rate to 3.25% a year...as if to consider the economy

BOK slashes key rate by 0.25% to 3.5% → 3.25%
"Slowing inflation and household debt growth behind rate cut"
"Confirms slowing inflation due to 1% rise in consumer prices in September"

[Anchor]
The Bank of Korea's Monetary Policy Committee held a meeting this morning and cut its key interest rate.

It's down 0.25% from the previous 3.5%.

I'll connect you to a reporter for more information.

Reporter Lee Seung-eun, Bank of Korea cut its key interest rate?

[Reporter]
Yes, the Bank of Korea's Monetary Policy Committee just decided to cut its benchmark interest rate.

It's down 0.25% from the previous 3.5%.

From February last year to August this year, the Bank of Korea froze its key interest rate at 3.5% per annum for 13 consecutive times.

After this freeze march, we started our first cut.

The base rate was 3.25% due to a 0.25%p cut.

The slowdown in inflation and household debt growth seems to have played a major role.

Consumer price growth last month was only around 1%, the lowest in three years and seven months.

The slowdown that has continued to be revealed as a clear indicator has eased the price burden.

On top of that, the increase in household debt, which has been cited as the reason why the Bank of Korea has been forced to postpone interest rate cuts, has also slowed down for now.

Household loans from the five major banks fell significantly last month from August, and the increase in apartment prices in Seoul continued to slow down.

In this situation, concerns over a slowdown in the domestic economy have become prominent, and the cut can no longer be delayed.

In response, the Bank of Korea seems to have decided to cut interest rates by 0.25%p instead of insisting on freezing interest rates.

I'm Lee Seung Eun of YTN.