On 29 May 2025, the Bank of Korea (BOK) reduced its benchmark interest rate by 25 basis points to 2.5%, marking the fourth cut since October 2024. This decision aligns with expectations from all 36 economists surveyed by Reuters, aiming to address increasing downside risks to economic growth and inflation, partly due to United States measures affecting global trade. Alongside the rate cut, the BOK sharply downgraded its 2025 economic growth forecast to 0.8%, nearly halving its earlier estimate of 1.5%. The central bank cited weak domestic demand and external pressures, including U.S. trade tariffs imposed under President Donald Trump. Despite recent easing of global trade tensions, uncertainties surrounding U.S.-China relations and geopolitical risks continue to affect markets. The domestic economy remains frail, with ongoing weakness in consumer spending, business investment, and slow job creation. The BOK's decision comes just days before South Korea's presidential election, scheduled for 3 June 2025, following the ousting of former President Yoon Suk Yeol over his brief attempt at martial law in December 2024. The election campaign has been marred by personal attacks and scandals, overshadowing policy discussions. Liberal frontrunner Lee Jae-myung and conservative candidate Kim Moon-soo have engaged in bitter mudslinging, with controversies involving luxury gifts and allegations of misconduct dominating headlines. The political climate is further complicated by the emergence of third-party candidate Lee Jun-seok, who is polling at 10.4% and appealing to frustrated young voters, particularly men, with controversial anti-feminist rhetoric. His presence threatens to split conservative votes, potentially securing a victory for the leftwing candidate. The BOK's monetary policy board, comprising seven members, voted unanimously for the rate cut. Governor Rhee Chang-yong is scheduled to hold a live-streamed press conference to discuss the policy review and economic outlook. In response to the rate cut, South Korea's stock market reacted positively, with the Kospi index rising by 1.7%. The central bank's decision reflects its proactive measures to counteract the adverse effects of international trade tensions and domestic political instability on the economy....