SEOUL (Reuters) - South Korea's central bank cut interest rates on Friday as widely expected, embarking on an easing cycle to join global peers, as headline inflation slowed and the economy shrank in the second quarter.

The Bank of Korea (BOK) lowered its benchmark interest rate by a quarter percentage point to 3.25% at its monetary policy review, an outcome expected by 34 of 37 economists polled by Reuters.

Governor Rhee Chang-yong holds a news conference at around 0210 GMT, which will be livestreamed via YouTube.