Nomura Securities: The Bank of Korea will start a rate-cutting cycle in October, and by the end of next year, the interest rate will be reduced to 2.75%

Nomura Securities economist Jeong Woo Park stated that the Bank of Korea may start cutting interest rates in October, and by the end of 2025, it will reduce the policy rate from the current 3.50% to 2.75%. Park believes that the Bank of Korea's decision to keep interest rates unchanged on Thursday is "dovish", as at a meeting on August 22nd, four members of the policy committee were open to lowering interest rates over the next three months, compared with only two members at a July meeting. If government measures can stabilize domestic real estate market, The Bank of Korea will initiate an easing cycle in October.