The Bank of Korea (BOK) held its base interest rate steady at 2.5% on Thursday, citing financial stability concerns amid a sharp rise in household debt and housing prices. The decision by the Monetary Policy Board comes as the central bank weighs inflation control against growing risks in the credit and property markets.

In a statement following the decision, the BOK said headline inflation is projected to remain near 2% for the time being, with a temporary decline expected in July. However, it warned that household lending, particularly mortgage debt, has increased at a faster pace than expected in recent