South Korea's central bank, the Bank of Korea (BOK), has reduced its benchmark interest rate by a quarter percentage point to 3.25%, marking its first rate cut in four and a half years. This move aligns with global trends as other central banks, including the Federal Reserve, have also eased policies recently. The rate cut was largely anticipated by economists due to a contraction in GDP and falling private consumption, with inflation below the BOK's 2% target. The decision was influenced by a cooling property market and a desire to support economic growth, although concerns about household debt persist. Analysts predict the BOK will proceed cautiously with further easing to maintain financial stability, particularly concerning property prices. Governor Rhee Chang-yong is expected to provide further insights during a news conference.