Seoul: South Korea's central bank kept its benchmark interest rate unchanged on Thursday due to continued uncertainty in the Middle East amid rising inflation risks and a weak currency.
According to Yemen News Agency, in a widely expected decision, the monetary policy board of the Bank of Korea kept the key interest rate steady at 2.5 percent at its rate-setting meeting in Seoul.
This marks the eighth consecutive time the central bank has decided to hold interest rates steady, even as the bank continues its monetary easing cycle.
The Bank of Korea began monetary easing in October 2024 and cut the benchmark rate by a cumulative 100 basis points from 3.5 percent to support economic growth, but it has held it steady since July 2025.
However, the central bank is expected to adopt a hawkish stance in upcoming rate-setting meetings due to rising inflationary pressures and a better-than-expected pace of economic recovery.