Nomura Securities: The Bank of Korea will start a rate-cutting cycle in October and cut interest rates to 2.75% by the end of next year.

Jeong Woo Park, economist at Nomura Securities, said the Bank of Korea could cut its policy rate to 2.75 percent by the end of 2025 from the current 3.50 percent after it starts cutting rates in October. Park described the Bank of Korea's decision to keep rates unchanged on Thursday as "dovish" as four policy committee members were open to rate cuts in the next three months at the Aug. 22 meeting, compared with only two at the July meeting. The Bank of Korea will start an easing cycle in October if the government's measures can stabilize the domestic property market.