South Korea's central bank to cut interest rates for third time next week

South Korea’s central bank is expected to cut its policy rate for the third time in a row next week in response to growth concerns heightened by political instability sparked by the president’s impeachment. Nineteen of 26 economists surveyed by The Wall Street Journal predict the central bank will cut rates by 25 basis points to 2.75% at its Jan. 16 meeting. “Concerns about slowing domestic demand amid political unrest following Yoon Seok-yeol’s declaration of martial law are likely to be a key driver of the upcoming policy meeting,” said Suktae Oh and Kiyong Seong, economists at Societe Generale. The remaining seven economists expect the central bank to keep rates unchanged in January before cutting in February amid caution about a weakening won. (Jin Shi)