The Bank of Korea has made an unexpected decision to reduce its benchmark interest rate by a quarter-percentage point to 3%. This move is in response to the uncertainties in trade and the economy following Donald Trump's election victory.

The decision is significant as it comes just a month after the central bank's previous policy adjustment. The rate cut reflects the Bank's concerns about the deteriorating growth forecasts and the potential impact of increased trade risks on the South Korean economy. The rate cut was a surprise to investors who had expected a more cautious approach in the current economic climate.