South Korea's central bank cut interest rates for the first time since mid-2020 on Friday and flagged there was room to reduce further, giving some relief to households that have faced the highest borrowing costs in 16 years.

South Korea’s central bank cut its policy rate for the first time in more than four years as pressure to revive a sluggish economy outweighed concerns about the country’s level of household debt.

South Korea's central bank has cut its key interest rate for the first time in more than four years, saying the country's economic outlook is becoming more uncertain.