International News 28 November 2025
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Bank of Korea Holds Rates as Weak Won and Housing Risks Limit Policy Space
The Bank of Korea kept its benchmark interest rate unchanged at 2.50% on Thursday, in line with market expectations, as a sharply weakening won and growing financial-stability risks narrowed the room for further easing. Policymakers also raised their 2025 growth and inflation forecasts to 1.0% and 2.1%, respectively, while projecting 1.8% growth and 2.1% headline inflation for 2026. Analysts have pushed back expectations for the next rate cut to the first quarter of 2026, citing concerns over the won’s nearly 4% slide this quarter—making it Asia’s second-worst performer—and the persistent rise in Seoul apartment prices, which climbed another 0.2% in the week to 17 November. The central bank faces mounting pressure as strong domestic demand for U.S. stocks and pension-fund outflows weigh on the currency, while the property market remains overheated. Economists note that the government’s priority is stabilizing FX markets and curbing housing inflation, echoed by President Lee Jae-myung’s support for a rate-cut pause in October. Although Governor Rhee Chang-yong previously said a majority of board members were open to easing, appetite has softened. Meanwhile, Finance Minister Koo Yun-cheol confirmed the government recently met with the National Pension Service, exporters, and brokerages to discuss stabilizing the dollar-won market, though no concrete measures have been announced.
China’s Industrial Profits Slide Again in October as Domestic Demand Falters
China’s industrial profits fell 5.5% year-on-year in October, reversing strong gains in the previous two months and highlighting persistent pressure from weak domestic demand and declining exports. The downturn, reported by the National Bureau of Statistics on Thursday, comes despite signs of easing trade tensions with the U.S. and follows sluggish Q3 economic growth—the weakest in a year. From January to October, profits rose only 1.9%, slowing from 3.2% in the first nine months. Retail sales also underperformed in October despite the long national holiday and the month-long Singles’ Day shopping season, while producer prices remained in contraction and factory output grew at its slowest pace since August 2024. The weakness is expected to intensify calls for Beijing to deliver stronger support measures to revive consumption and reduce reliance on exports amid rising trade barriers. Structural challenges persist, including elevated youth unemployment and a prolonged property downturn that continues to weigh on confidence. Among firm types, state-owned enterprises saw profits stagnate in the first 10 months of the year, while private firms recorded 1.9% growth and foreign-funded companies 3.5%. The data covers industrial firms with annual revenues of at least 20 million yuan (US$2.82 million).
Gold Holds Near One-Week High as Markets Weigh December Fed Rate Cut
Gold prices were steady on Thursday, hovering near their highest level in more than a week as investors assessed the likelihood of a Federal Reserve rate cut in December amid mixed policy signals. Spot gold traded at US$4,162.98 per ounce, while U.S. gold futures for December delivery slipped 0.1% to US$4,158.60. Uncertainty over the timing and scale of potential rate cuts has boosted hedging activity through swaptions and daily rate-linked derivatives. Comments from New York Fed President John Williams and Governor Christopher Waller, who indicated a December cut may be warranted due to labor-market weakness and falling Treasury yields, strengthened dovish expectations—though other regional Fed presidents urged caution until inflation moves closer to the 2% target. Political dynamics also played a role, with Fed Chair candidate Kevin Hassett aligning with President Donald Trump’s view that interest rates should be lower. Futures now imply an 85% chance of a December rate cut, according to CME FedWatch, supporting gold’s appeal in a low-rate environment. U.S. data remained mixed: initial jobless claims edged lower but hiring momentum remained soft, while consumer confidence weakened in November. Among other precious metals, spot silver held at US$53.34 per ounce, platinum slipped 0.3% to US$1,583.94, and palladium fell 0.4% to US$1,417.56.