AsianFin -- South Korea’s central bank lowered its benchmark interest rate on Thursday and sharply downgraded its economic growth forecast for 2025, as it seeks to cushion the impact of rising U.S. tariffs and domestic political uncertainty.

The Bank of Korea cut its key rate by 25 basis points to 2.5% following its latest monetary policy meeting — the fourth rate cut since October, marking a continued effort to stimulate a sluggish economy. The central bank also revised its 2025 growth forecast to just 0.8%, down from the 1.5% projection it made in February.