South Korea’s central bank has lowered its key policy rate and says the country’s economy will grow at a slower pace than it initially anticipated

South Korea's central bank on Thursday cut its benchmark interest rate by 25 basis points to 3% in a surprise move.Economists polled by Reuters had estimated the bank to hold rates at 3.25%.This is the second straight cut as the Bank of Korea lowered rates by 25 basis points in its last meeting in October as well.

South Korea's central bank delivered a surprise interest rate cut on Thursday and signaled more to come, as economic growth faltered and policymakers turned a wary eye to trade risks from a second Donald Trump presidency.