SEOUL (Reuters)

Board members of South Korea’s central bank emphasized the need to continue easing monetary policy to support economic growth, with caution regarding associated risks, as noted in the minutes from their May 29 policy meeting.

One member highlighted the importance of assessing the risks of further rate cuts, particularly due to instability in housing prices. Another member agreed, suggesting that a balanced policy mix is essential, combining ongoing monetary easing with targeted fiscal and financial measures to support vulnerable sectors.

Members observed that U.S. tariff changes, monetary policy adjustments, and domestic policies under the new administration should influence decisions on further rate cuts.

Last month, the Bank of Korea lowered interest rates by 25 basis points to 2.50% in a unanimous decision, just before a snap presidential election won by liberal candidate Lee Jae Myung. Lee advocates for expansionary fiscal policy to enhance domestic demand and plans to introduce a second supplementary government budget this Thursday, following a 13.8 trillion won ($10.12 billion) budget approved in May.

($1 = 1,363.2000 won)