The Bank of Korea cut interest rates by 25 basis points to 3.25% from 3.5%. In line with market expectations. GDP contracted in the second quarter, private consumption fell, and headline inflation fell below the bank's 2% target in September. Analysts said the Bank of Korea would slow the pace of rate cuts as curbing property prices and rising household debt remained important considerations. Ho Woei Chen, analyst at UOB, said: "While the macroeconomic conditions for rate cuts are becoming more apparent, the Bank of Korea will proceed cautiously considering financial stability, especially concerns that rate cuts may stimulate the property market."