BOK slashes key rate to 3.25% a year

The Bank of Korea has started its first cut after ending its march to freeze its key interest rate since February last year.

The Bank of Korea's Monetary Policy Committee held a meeting this morning and decided to cut its key interest rate by 0.25 percentage point to 3.25 percent per annum.

The benchmark interest rate has been frozen at 3.5% per annum for 13 consecutive times since February last year.

The move took into account a surge in prices and household debt, which appears to have decided to cut interest rates as related indicators have slowed.

In particular, it is analyzed that the growing pressure on the government to cut the rate has also affected the growing concerns over the economic slowdown.