Economic Buzz: Bank of Korea maintains its key interest rate at 2.50%

The Bank of Korea maintained its key interest rate and signaled a neutral policy stance in its new six-month dot plot framework. The Monetary Policy Board unanimously decided to leave the Base Rate unchanged at 2.50 percent. The central bank had previously lowered the benchmark rate by a quarter-point each in May and February 2025. The board noted that the economy continued its improving trend, underpinned by a recovery in consumption and strong exports. The bank also raised its growth outlook for this year to 2.0 percent from 1.8 percent. However, the bank cautioned that there remains both upside and downside risks along the future path of economic growth.

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