Monetary Policy Report

Executive Summary for Monetary Policy Report (March 2025)

구분
Monetary Issues
등록일
2025.03.13
조회수
882
키워드
Monetary Policy Bank of Korea Price stability Financial stability National economy
담당부서
Monetary Policy Department(02-759-4143)
첨부파일

Monetary Policy Report at a Glance

Monetary Policy Decisions

  • <Bank of Korea Base Rate>

    • Base Rate Cut from 3.50% to 2.75%

      • The Bank of Korea has shifted its monetary policy stance, cutting the Base Rate by 0.75%p in total on three occasions as downward pressure on economic growth has increased amid a stabilization in inflation and a slowing trend in household debt.

Economic and
Financial Developments

  • <Inflation>

    • Inflation is expected to remain stable

      • After falling into the 1% range, consumer price inflation has gradually risen, stabilizing at around the target level.
      Looking ahead, it is projected to remain at around 2%.

  • <Growth>

    • Domestic economic growth has slowed

      • Economic growth has slowed due to a sluggish consumption and weaker export growth.
      Low growth is expected to continue for the time being, with this year’s growth rate projected to slow to around 1.5%.

  • <Bank Lending to Households and Exchange Rate>

    • Household loans slowed
      and exchange rate rose

      • Growth in household loans has continued to slow, while the Korean won to U.S. dollar exchange rate has risen sharply.
      Going forward, it will be necessary to be mindful of any potential rebound in household debt growth and in exchange rate volatility.

Prospects for Monetary Policy

  •  


    • The Bank of Korea will determine the timing and pace of any further Base Rate cuts based on inflation, growth, and financial stability.

      • The BOK will closely assess domestic and global economic policy changes, developments in domestic political conditions, and the effects of past Base Rate cuts on inflation, on economic growth, and on financial stability.
      Based on these assessments, the BOK will determine the timing and pace of any further Base Rate cuts.

  • This report is the English version of the Bank of Korea's Monetary Policy Report published on March 13, 2025.
    In case of any inconsistency, the original version in Korean will prevail.
  • Data for figures are available in the attached Excel file.
  • Inquiries: tel 82-2-759-4143, email bokmpcm@bok.or.kr

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