The Bank of Korea (BOK) kept its benchmark interest rate at 3% during its monetary policy meeting on Thursday, maintaining a cautious stance amid heightened exchange rate volatility and weak domestic growth. The decision follows two consecutive rate cuts in late 2024, the first back-to-back reductions since the global financial crisis.

The BOK cited persistent risks to financial stability, including the South Korean won’s depreciation, which recently pushed the KRW/USD exchange rate to the upper 1,400s. With political uncertainty and global market shifts compounding economic pressures, the central bank opted to pause further monetary easing to monitor developments.