Bank of Korea "Further cuts in interest rates next year" Unusual notice...Concerns over a slump in domestic demand ↑ [Anchor Report]

The Bank of Korea has said it will further cut its key interest rate next year.

It is unusual for the Bank of Korea, which has declined to say whether to cut interest rates every time the Monetary Policy Committee is held, to announce such a cut in interest rates.

The reason behind this is concerns about a slump in domestic demand due to downside risks to the economy.

[Lee Jung-hwan / Professor of Economics and Finance at Hanyang University (YTN Newsstart): Domestic demand can increase only when the construction industry or small businesses revive, but as domestic demand continues to contract, we are talking about easing monetary policy due to concerns that these negative cycles of shrinking domestic demand, shrinking employment, shrinking investment, and shrinking employment.]

In fact, consumer sentiment was frozen even though it was the end of the year.

Reservations for end-of-year meetings, which had been at the moment, were canceled one after another due to the emergency martial law incident and the impeachment.

[Kim Eun-hee / Self-employed: Year-end party, year-end party, and many of them were canceled. I'm very worried. In the case of our merchants, December is actually the highlight, but....]

The same goes for domestic companies.

The negative outlook that the economy will be difficult next year is the longest ever for two years and 10 months in a row.

In particular, the monthly economic forecast was the biggest fall in more than five years since 2020, when the pandemic crisis was felt, due to the prolonged global recession and the unstable political situation.

On top of that, it is questionable whether we are preparing well for the second Trump term, which will be inaugurated next month.

Amid political chaos and anxiety that may end at any time, there are growing concerns about whether our economy will be able to have a hopeful new year.