South Korea's central bank kept its benchmark rate unchanged Thursday, as lingering uncertainty in the Middle East prompted a cautious stance amid intensifying risks of inflation and currency weakness.
In a widely anticipated decision, the Monetary Policy Board of the Bank of Korea held the key rate steady at 2.5 percent in its rate-setting meeting in Seoul. It is the first monetary policy meeting chaired by BOK Gov. Shin Hyun-song, who took office last month.
It marked the eighth consecutive on-hold decision, even as the central bank remains in an easing cycle.
The BOK began monetary easing in October 2024 and has cut the benchmark interest rate by a cumulative 100 basis points from 3.5 percent to support economic growth, but it has kept it unchanged since July 2025.
However, the central bank is expected to take a hawkish stance in upcoming rate-setting meetings due to rising inflationary pressures and the better-than-predicted pace of economic recovery. (Yonhap)
