Here's why this is Korea's last interest rate slash for the year

But the catch is that the 25bps cut was not unanimous.

According to BBVA Research, as expected, the Bank of Korea cut its benchmark interest rate by 25bps for the second time this year, to 2.75% today.

Here's more from BBVA Research:

The BoK noted that economic growth has been weak, and also said that “the negative output gap in the domestic economy will persist for a considerable time.”

The BoK also lowered its growth outlook for 2012 and 2013 to 2.4% and 3.2% respectively, from 3.0% and 3.8%. Remarks by the BoK Governor were somewhat hawkish, indicating that the rate cut decision was not unanimous.

We therefore do not expect further rate cuts this year, all the more so with presidential elections looming in December. However, given slowing growth momentum and low inflation, we would not rule out another rate cut in early 2013.

The central bank also released its target inflation range for the years 2013-2015, which it set at 2.5%-3.5% - a narrower range than the previous 2%-4% that was established for the 2010-2012 time period.