Key facts
- Bank of Korea held its benchmark interest rate at 2.5%.
- Forward guidance was adjusted to a more hawkish tone.
- Two of five Monetary Policy Board members voted for a 0.25% rate hike.
- BOK projects South Korea's GDP growth at 2.6% for 2026.
- BOK forecasts inflation at 2.7% for 2026.
The Bank of Korea (BOK) decided to maintain its benchmark interest rate at 2.5%, a move anticipated by market observers. However, the central bank's forward guidance was adjusted to a more hawkish tone, indicating a potential for future rate increases. Notably, the decision was not unanimous, with two out of the five members of the Monetary Policy Board voting for an immediate 0.25% rate hike. Looking ahead, the BOK has projected that South Korea's Gross Domestic Product (GDP) will grow by 2.6% in 2026, while inflation is expected to reach 2.7% in the same year.