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Economic Buzz: Bank of Korea keeps rate unchanged
10-Jul-2025 10:33
The Bank of Korea left its interest rate unchanged on Thursday citing risks associated with rising household debt and escalating trade tensions.

The Monetary Policy Board decided to leave the Base Rate unchanged at 2.50 percent.

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

The Board will maintain its rate cut stance to mitigate downside risks to economic growth and adjust the timing and pace of any further Base Rate cuts while closely monitoring changes in the domestic and external policy environments and examining the resulting impact on inflation and financial stability, the bank said in a statement.

The board observed there is considerable uncertainty related to trade negotiations. The board also noted that risks associated with the housing market in Seoul and its surrounding areas and household debt increased.

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