Asianfin--On Friday, South Korea’s central bank reduced its policy rate for the first time in over four years, prioritizing economic recovery despite concerns over rising household debt.

The Bank of Korea lowered its benchmark interest rate by 0.25 percentage points to 3.25% after a meeting of its monetary policy committee. This marks the first rate cut since May 2020, when the economy was grappling with the effects of the COVID-19 pandemic.