11:09 - 11.10.2024

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October 11, Fineko/abc.az. The Bank of Korea on Friday lowered the base rate to 3.25% from 3.5% per annum, ABC.AZ reports, referring to the regulator.

The decision coincided with the forecasts of most analysts, according to Trading Economics and the Financial Times. Prior to that, the Central Bank had kept the rate at the highest level in 16 years for 13 consecutive meetings.

The rate reduction was the first since May 2020.

Inflation "showed a clear trend towards stabilization", growth of household debt slowed down, and risks in the foreign exchange market decreased slightly, the report says. The Bank of Korea is also encouraged by the expected inclusion of the country's government bonds in the calculation of the FTSE World Government Bond Index (WGBI).