Economy5d ago·30 sources
Bank of Korea Holds Rates Steady, Lifts Growth Forecast
The Bank of Korea has maintained its benchmark seven-day repurchase rate at 2.50% for the sixth consecutive meeting, aligning with market expectations. Concurrently, the central bank has revised its economic outlook upwards, now forecasting gross domestic product to expand by 2.0% in 2026, an increase from the previous projection of 1.8%. This adjustment reflects factors such as robust demand for Korean chip exports, which has lessened the economy's need for monetary stimulus. Policymakers are also monitoring the weakening won against the dollar and the potential inflationary impact of lower interest rates on household debt. Analysts polled by The Wall Street Journal largely anticipate rates will remain steady throughout the year, with some suggesting potential increases in 2027.