(Bloomberg) — Concerns about economic momentum have increased among Bank of Korea board members, according to minutes of an Oct. 11 meeting; The majority decided to cut the benchmark interest rate by 25 basis points to start the policy pivot.

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At least five of the seven members showed some concern about slowing economic growth, weaker-than-expected consumption or challenges facing small businesses, according to minutes released by the BOK on Tuesday. According to some members, the US presidential elections, conflicts in the Middle East and the slowdown of the Chinese economy were other factors that increased economic uncertainties.

The decision to reduce the rate to 3.25% was opposed by a member whom Governor Rhee Chang-yong identified as Chang Yongsung at the post-decision meeting. The minutes showed the member saying the BOK should wait for clearer signs of house prices and household debt falling as a rate cut could revive the property market.

Most of the members who voted for the cut shared concerns about property prices but felt there were enough signs of a slowdown to allow the BOK to relax the restrictive policy rate now. One member said the Fed’s 50 basis point interest rate cut in September eased pressure on the Won and also paved the way for the BOK to move forward with a pivot.

The BOK’s next meeting will be held at the end of November to decide on interest rates, and most economists expect a stabilization. But speculation about a faster-than-expected easing cycle increased after the BOK reported last week that the economy grew marginally last quarter compared to the previous three months.

Rhee told lawmakers early Tuesday that the BOK’s economic growth forecast of 2.4% in 2024 is very likely to be revised downwards when the board reconvenes next month. He predicted it could be 2.2 percent or 2.3 percent, adding that predictions for 2025 have become much more difficult due to rising geopolitical risks and weakening export volumes.

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