The Bank of Korea (BOK) on Thursday held its base rate steady at 2.5%, citing stable inflation and a modest improvement in domestic growth but warning that housing prices in Seoul and household debt remain elevated. The decision followed a series of cuts late last year and earlier this year, as the central bank shifted toward easing to counter sluggish consumption and construction investment.

The central bank also revised its 2025 growth forecast up to 0.9%from 0.8% in May and raised its inflation projection to 2% from 1.9%. Consumer sentiment climbed to its highest level in more than