The Bank of Korea reduced its benchmark rate by a quarter-point on Tuesday as domestic political unrest and trade policies of the US government weighed on domestic demand and economic growth. The monetary policy board, governed by Rhee Chang Yong, decided to lower the Base Rate by 25 basis points to 2.75 percent. This was the third reduction in the last four meetings. The board judged that it is appropriate to further cut the interest rate to mitigate downward pressure on the economy. The bank downgraded its growth outlook for this year to 1.5 percent from 1.9 percent as deteriorating economic sentiment and US tariff policies dampen the domestic demand recovery and export growth. The Korean currency is lingering around its lowest level in nearly 16 years against the US dollar. USD/KRW was quoting at 1,431.86, a near 3 week low.