S. Korea’s central bank holds rate steady
South Korea’s central bank kept its key interest rate unchanged at 2.5 percent on Friday, citing rising uncertainty from the Middle East conflict and its impact on inflation, currency stability, and economic growth, Qazinform News Agency cites Yonhap.
This marks the seventh straight pause, despite earlier rate cuts totaling 1 percentage point since late 2024. The Bank of Korea said the decision reflects the need to monitor how the conflict affects global markets before making further policy moves.
The Middle East conflict has pushed up oil prices, contributing to a slight rise in inflation to 2.2 percent in March. While still near the bank’s target, officials warned inflation could increase further. At the same time, the Korean won has weakened to its lowest level since 2009, raising concerns about financial stability.
Earlier, Qazinform reported South Korea's national debt hits 861.2 billion US dollars in 2025.
