Bank of Korea (BOK) Gov. Shin Hyun-song bangs the gavel to open a Monetary Policy Board meeting at the central bank in Seoul, Thursday. It was Shin's first rate-setting meeting since he took office on April 21. Courtey of BOK
The Bank of Korea (BOK) raised its 2026 growth forecast to 2.6 percent from the previous 2 percent, Thursday, amid a stronger outlook for the country's semiconductor exports.
The BOK projected economic growth at 2.1 percent for 2027. It forecast consumer inflation at 2.7 percent for this year and 2.3 percent for 2027.
The central bank also held its benchmark interest rate steady at 2.5 percent for an eighth consecutive meeting, as lingering uncertainty in the Middle East prompted policymakers to maintain a cautious stance.
In a widely expected decision, the central bank's Monetary Policy Board held the rate steady at its latest policy meeting. The decision marked the eighth consecutive hold, despite growing expectations that the BOK could shift toward tighter policy later this year.
