South Korea has cut its interest rate to 2.5% and sharply lowered its growth forecast amid mounting trade tensions and domestic instability. The central bank warned of a deeper downturn than the 2008 crisis, with exports weakening and uncertainty surrounding inflation and global economic conditions. As the country prepares for a presidential election, hopes rest on potential fiscal stimulus and successful trade negotiations with the U.S. to ease ongoing tariff pressures.

New York Office In a decision closely watched by investors, the U.S. Federal Reserve  opted to keep interest rates unchanged  at...