Ammon News - The Bank of Korea cut interest rates by 25 basis points and significantly lowered its GDP forecasts on Tuesday, steering Asia's fourth-largest economy from a restrictive monetary policy stance towards a neutral one to support growth.

The BOK's seven-member board unanimously voted to reduce its benchmark interest rate to 2.75% at its monetary policy review, an outcome expected by 35 out of 36 economists polled by Reuters.

The reduction is the third since the BOK started cutting borrowing costs from a 15-year high in October, positioning Korean rates around 150 basis points below the U.S. Federal Reserve's target range of 4.25-4.50%.

The central bank also lowered its growth forecasts for this year to 1.5% from 1.9%, below the range of 1.6% and 1.7% flagged last month, while keeping its inflation forecast steady at 1.9% for both this year and next. Reuters