The Bank of Korea (BOK) has maintained its key interest rate at 3.5% for the eighth consecutive session amid ongoing concerns about a tepid economic recovery and slower-than-expected moderation of inflation. This decision marks a continuation of the central bank’s rate freezes which began in February, following a series of seven rate hikes between April 2022 and Jan. 2023.

The BOK’s statement omitted its usual statement regarding the potential need for further rate hikes, suggesting a possible easing of its tightening policy in the future. However, BOK Governor Rhee Chang-yong indicated that it is premature to discuss rate cuts and unlikely for any reduction to occur in the next six months.