Financial News: Bank Of Korea Keeps Key Rate Unchanged

Bank Of Korea Keeps Key Rate Unchanged

11/26/2025 - 23:02:00 (RTTNews)

(RTTNews) - The Bank of Korea left its key interest rate unchanged as policymakers remained cautious about risks associated with household debt and the impact of heightened currency volatility. The Monetary Policy Board decided to maintain the Base Rate at 2.50 percent, as widely expected, on Thursday.

The central bank had previously lowered the benchmark rate by a quarter-point each in May and February.

"The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate and to assess domestic and external policy condition," the bank said in a statement.

Consumer price inflation is forecast to be 2.1 percent this year, above the August forecast of 2.0 percent. Nonetheless, core inflation is expected to be consistent with the previous forecast of 1.9 percent.

The bank upgraded its growth forecast for both this year and next citing strong semiconductor sector and the conclusion of Korea-US tariff negotiations.

The economy is projected to grow 1.0 percent in 2025, up from the previous outlook of 0.9 percent. The forecast for next year was lifted to 1.8 percent from 1.6 percent. "While leaving room for potential rate cuts, the Board will decide whether and when to implement any further Base Rate cuts while closely monitoring changes in domestic and external policy conditions and examining the resulting impact on economic growth, inflation, and financial stability," the bank added.

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