Korea’s central bank dutifully delivered a 25bp interest-rate cut on Thursday as part of a “welcoming gift” for the new finance minister, Choi Hyung-hwan.
It is the first rate cut since May last year and reduces the base rate to 2.25%, delivering the easier monetary conditions that Choi says are necessary to boost growth. He has also promised W40.7 trillion of stimulus, including W11.7 trillion extra fiscal spending and a package of structural reforms a big bang expansionary policy.
Bank of Korea governor Lee Ju-yeol, who is also a new appointee, seems to have struck a cooperative relationship with Choi, drawing comparisons among analysts to...
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