The Bank of Korea (BOK) held its key interest rate steady at 3.5% for the second consecutive time on Tuesday as inflation appears to be easing and concerns are rising over an economic slowdown. The BOK has held its key interest rate at 3.5% since February after hiking it seven consecutive times since April last year.

While the BOK expects inflation to remain above its target level, it also projects inflation to slow in the coming months. South Korea’s consumer price index rose 4.2% in March from a year earlier.