South Korean Central Bank Meeting Minutes: Majority Believes Further Rate Cut Necessary

The minutes of the meeting, published on Tuesday, show that South Korean Central Bank members expressed the need for a rate cut at their policy meeting on July 10. They emphasized that the ongoing trade talks with the US would be key factors in determining the timing and pace of future rate cuts. Although the central bank maintained its benchmark interest rate at 2.50% this time, most committee members hinted at a potential rate cut within the next three months, while warning of significant economic uncertainty caused by US tariff policies. One member noted: "The uncertainty surrounding future economic growth trajectory is still very high, especially given the ongoing trade talks with the US." They advocated for maintaining a loose monetary policy stance to support sluggish economic growth. Another committee member concurred, saying it was time to consider another rate cut, while another emphasized that there was still a need to adjust the benchmark interest rate. The members pointed out that the progress of US-South Korea trade talks would be a key factor in determining future policy paths. Currently, South Korean officials are working hard to secure an agreement on reducing tariffs. Finance Minister Hong Nam-ki said on Tuesday that he would seek to reach a mutually beneficial trade agreement with US Treasury Secretary Janet Yellen during their meeting this week. The deadline for the tariff exemption period is August 1, and South Korea is making efforts to avoid the imposition of punitive tariffs by the US.