South Korea’s Central Bank Holds Rate at 3.5% for Fourth Consecutive Meeting

South Korea’s central bank left its benchmark interest rate unchanged at 3.5% on Thursday for the fourth meeting in a row, in response to easing but still elevated inflation and rising financial uncertainty.

Although the inflation rate in Korea is decreasing, the Bank of Korea (BOK) predicted that it would remain above its goal level of 2% “for a considerable period of time.”

The bank predicts inflation to increase to roughly 3% from August, and that any further rate hike will be considered “while assessing the changes in domestic and external policy conditions.”

For the month of June, inflation in South Korea came in at 2.7%, marking its lowest point since September 2021.