BOK’s decision to maintain 3.5% base rate aims to bolster economic growth amid potential global monetary shifts
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.
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.
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