Bank of Korea keeps key rate at 2.50%, signals pause in easing cycle

South Korea’s central bank kept its rate at 2.50%, flagging limited scope for further cuts amid currency weakness and rising inflation risks.

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Bank of Korea keeps key rate at 2.50%, signals pause in easing cycle

Bank of Korea keeps key rate at 2.50%, signals pause in easing cycle
The central bank of South Korea opted on 27 November to hold its benchmark interest rate at 2.50% unchanged for the fourth straight meeting. The decision comes amid concerns over weakening currency and rising inflationary pressures. The bank revised up its 2025 growth and inflation forecasts to 1.0% and 2.1%, respectively. Officials indicated that further rate cuts are unlikely soon, shifting tone away from earlier easing bias due to currency and price stability risks.