BOK cuts key rate to 2.75% in Feb. and slashes economic growth projection

South Korea's central bank lowered its benchmark interest rate by 25 basis points as widely expected, bringing it down to 2-point-7-5 percent.

It announced the decision on Tuesday following the second Monetary Policy Committee meeting of the year, resuming its rate-cutting cycle after two consecutive rate cuts in October and November last year followed by a pause in January.

Global trade uncertainties heightened by U.S. President Donald Trump's tariff hikes and weak domestic demand fueled expectations of the rate cut due to downward pressure on South Korea's economy.

The Bank of Korea also slashed its economic growth projection for this year from 1-point-9 percent to 1-point-5 percent.