BOK hints at slashing Korea's 2025 growth forecast amid Trump tariff chaos

The Korean economy this year is likely to grow significantly slower than the previous forecast of 1.5 percent, hamstrung by tariff uncertainties, prolonged political turmoil and financial losses from wildfires, the country’s top monetary policymaker said Thursday. Underpinning the grim outlook is growth in the first three months of this year, which is estimated to have ended up far lower than expected due to the sudden combination of headwinds. The Bank of Korea (BOK) now expects first quarter growth to fall below 0.2 percent, significantly revised down from the 0.5 percent forecast in November. It even said the country “cannot rule out the possibility of a contraction.” The central bank left the key rate unchanged at 2.75 percent Thursday, citing sustained weakness and the won's volatility relative to the U.S. currency. A sudden uptick in household debt buildup, coupled with rising home prices, was another factor. Still, it hinted at easing next month, factoring in anemic domestic spending and a weak export outlook. All six members of the monetary policy board were open to easing i