BOK Gov. Shin Hyun-song bangs the gavel at a rate-setting meeting held at the central bank's headquarters in Seoul, Thursday. (Bank of Korea) South Korea's central bank kept its benchmark interest rate unchanged on Thursday, signaling that a shift toward a tighter monetary policy stance could come soon.The Bank of Korea decided to hold the benchmark rate steady at 2.5 percent, extending its rate freeze that has been in place since May 2025. Prior to the pause, the central bank had been on an easing cycle.Thursday's rate-setting meeting marked the first under new BOK Gov. Shin Hyun-song, who took office in late April.Inflationary pressure, fueled by rising oil prices linked to conflict in the Middle East, continued to weigh on the economy, prompting the central bank to maintain a hawkish stance.Consumer prices rose 2.6 percent from a year earlier in April, exceeding the BOK’s 2 percent inflation target. The figure also accelerated from 2.2 percent in March.Core inflation, which excludes food and energy prices, also rose 2.2 percent on-year in both March and April, remaining above the target.The Korean won's sustained weakness against the dollar also added pressure on the central bank. In recent weeks, the won has traded above the 1,500-per-dollar level, revisiting levels seen during past financial crises.Meanwhile, the central bank raised its economic growth forecast for the country to 2.6 percent, up 0.6 percentage point from its previous projection of 2 percent. The earlier forecast was released on Feb. 26, two days before the outbreak of the Iran war.