South Korea's central bank said on Thursday that the benchmark interest rate will remain unchanged, while signaling an imminent hike going forward amid inflationary pressure.
The Monetary Policy Board of the Bank of Korea held the key rate steady at 2.5 percent, marking the 8th consecutive on-hold decision since July 2025.
"Given the uncertainties surrounding developments in the Middle East and their spillover effects remain high, the board judged that it would be appropriate to maintain the current level of the base rate while assessing developments in the conflict and their impacts on growth and inflation," the bank said in a statement.
The decision was in line with market expectations, but experts said they anticipate a rate hike during the central bank's next policy meeting in July.
At the meeting this week, five board members supported the decision to stay on hold, while two members voted against the decision and proposed a 25-basis-point rate hike.
