South Korea's Bank of Korea held its benchmark interest rate steady at 2.5 percent on Friday, the seventh consecutive freeze amid inflation pressures and a weakened won due to Middle East uncertainty. The rate has remained unchanged for nine months since July 10, 2025. The next policy meeting is scheduled for May 28.
The Bank of Korea (BOK) kept its benchmark interest rate at 2.5 percent during a Monetary Policy Committee meeting in Seoul on April 10. This marks the seventh straight hold, driven by rising inflation and foreign exchange volatility from the Middle East conflict, alongside a weakened won.
The decision was widely anticipated. The BOK cited two-sided risks of inflation, currency weakness, and slower growth amid Middle East uncertainty as reasons for caution. Governor Rhee Chang-yong opened the meeting with a gavel strike.
The central bank began an easing cycle in October 2024, cutting the rate by a cumulative 100 basis points from 3.5 percent. It has held steady since July 2025, now nine months without change.
With surging oil prices and economic pressures from regional tensions, the BOK left room for future adjustments. The next rate-setting meeting is on May 28.
