Finance Minister Choi Sang-mok (Yonhap)

South Korea's top economic policymaker on Thursday welcomed the central bank's unexpected decision to cut its benchmark interest rate for the second time in a row, reaffirming the government's commitment to revitalizing economic growth.

In a surprise move, the monetary policy committee of the Bank of Korea (BOK) slashed its key rate by 25 basis points to 3 percent, one month after it cut the rate by a quarter percentage point in the first pivot in its policy stance in over three years.

"I respect and welcome the decision," Finance Minister Choi Sang-mok said during a radio interview.

"Given the challenges facing domestic demand and livelihoods, I believe the rate cut will have a positive impact," he added of the latest rate reduction.

Many analysts had predicted the BOK would maintain the rate at its current level in November, especially as the Korean won has depreciated significantly in recent weeks, hovering around the critical 1,400 won-per-dollar threshold.

The BOK's decision suggests that the need to stimulate the sluggish economy outweighed concerns about foreign exchange volatility and rising household debt.

"The government will also intensify policy efforts to support domestic demand and improve livelihoods," Choi added. (Yonhap)