Seoul, Jan 15 || South Korea's central bank again left its benchmark interest rate unchanged on Thursday as a weakened won and rising inflation concerns limited room for further easing.
In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held the key rate at 2.5 per cent at its rate-setting meeting in Seoul, marking the fifth consecutive on-hold decision since July, reports news agency.
"Inflation is expected to gradually decline, though the elevated exchange rate remains a source of upside risk. Regarding financial stability, risks still remain related to housing prices in Seoul and its surrounding areas, to household debt and to the heightened exchange rate volatility," the BOK said in a released statement.
Thursday's rate freeze decision was unanimous, while one of the board's six members voiced the need to keep open the possibility of further rate reductions in the next three months, BOK Gov. Rhee Chang-yong told a press briefing.
The BOK dropped references to a possible rate cut from its policy statement for the first time since it entered an easing cycle in October 2024.