Photo : YONHAP News
The Bank of Korea(BOK) held its benchmark interest rate steady at two-point-five percent in the wake of continued instability stemming from the war in Iran.
The BOK’s Monetary Policy Board, which was convened for the first time on Thursday since BOK Gov. Shin Hyun-song took office last month, froze the key rate for the eighth consecutive session.
The central bank cut the rate by a cumulative 100 points starting in October 2024 in a bid to stimulate growth, but has held it at two-point-five percent since July 2025.
Prior to Thursday’s decision, however, board members had suggested a potential rate hike in response to soaring global oil prices amid prolonged crisis in the Middle East and inflationary concerns.
Producer prices in April jumped by a 28-year high of two-point-five percent due to surging prices of raw materials, and consumer prices rose two-point-six percent with petroleum products leading the gains.