South Korea’s Central Bank, the Bank of Korea, maintained its benchmark interest rate at 2.5 percent on Thursday during its rate-setting meeting in Seoul. This marks the fifth consecutive decision to keep the rate unchanged since July.
As per Yonhap News Agency, the Bank of Korea has, for the first time since initiating its easing cycle in October 2024, dropped any references to a possible rate cut from its policy statement.
Consumer prices climbed 2.3 percent year-over-year in December, staying above the bank’s 2 percent goal for the fourth consecutive month.
Despite a drop in global oil prices, import prices saw their sixth consecutive monthly increase last month, the first time this has occurred since 2021.
Driven by rebounding exports and private spending, BOK forecasts a 1.8 percent economic expansion this year, improving on last year’s 1 percent growth.
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