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Today’s cut should mark the end of the loosening cycle in Korea

Today’s 25 basis point interest rate cut by the Bank of Korea (BoK) takes the main policy rate back to the all-time low last seen during the global financial crisis. But with growth set to accelerate in the coming quarters on the back of faster government spending and concerns mounting about the high level of household debt, we think today’s cut to 2.0% marks the end of the current easing cycle. 

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