Seoul: The Bank of Korea again left its benchmark interest rate unchanged Thursday at 2.5 percent at its rate-setting meeting, marking the fifth consecutive on-hold decision since July.
According to Emirates News Agency, 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. Consumer prices rose 2.3 percent from a year earlier in December, remaining above the bank's 2 percent target for the fourth consecutive month.
Import prices rose for the sixth consecutive month last month despite a decline in global oil prices, marking the first such streak since 2021. The BOK expects the local economy to grow 1.8 percent this year, up from around 1 percent last year, on the back of strong exports and a recovery in private consumption.