The Bank of Korea maintains interest rates at 2.50% as expected

LootboxPhobia · 2026-02-26T02:55:11+00:00

The Bank of Korea maintains the benchmark interest rate at 2.50%, with the economy showing resilience and inflation cooling down. The growth forecast for 2026 has been revised up to 2.0%. The central bank has paused its easing cycle to address foreign exchange fluctuations and household debt. This year's economic growth is expected to benefit from a boom in the chip industry but faces uncertainties related to trade.

LootboxPhobia

2026-02-26 02:55:11

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Investing.com – The Bank of Korea kept the benchmark interest rate unchanged at 2.50% on Thursday, in line with market expectations, as the economy shows resilience and inflation cools, giving the central bank more room to assess its policy path.

The central bank raised its 2026 growth forecast from 1.8% to 2.0%.

Recently, the Bank of Korea stated that the easing cycle starting in October 2024 will be extended with a pause to address concerns over foreign exchange market fluctuations and rising household debt.

In a report released Monday, the central bank said it expects South Korea’s economy to grow faster this year than last, driven by the AI-driven chip boom led by Samsung Electronics and SK Hynix.

This growth outlook is made amid economic uncertainty caused by unpredictable changes in U.S. tariff policies, which could weaken export growth and disrupt key sectors including automobiles and steel.

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