According to Jin10 Data, Citigroup economist Jin-Wook Kim said in a report that the Bank of Korea may cut interest rates faster and more significantly in response to weaker-than-expected economic growth.

Kim said that he expects the Bank of Korea to cut interest rates by 25 basis points in January, April and July 2025. Previously, the Bank of Korea lowered its benchmark interest rate from 3.50% to 3.25% on October 11, starting its loose monetary policy.

Kim added that the central bank could also cut rates twice more in 2026 - possibly in January and July - to bring the policy rate down to 2.00%, below Citi's previous forecast of 2.50%.