Korea: Central Bank stands pat in April
Decision in line with market expectations: At its meeting on 10 April, the Bank of Korea (BOK) decided to keep the base rate unchanged at 2.50%. The decision was in line with market expectations and marked the seventh successive hold.
Uncertain outlook drives decision: The BOK cited the volatile international outlook—specifically war in the Middle East—as a reason to stay put. The BanK wished to wait for more clarity about the impact of conflict on domestic inflation and GDP growth.
Bank likely to leave rate unchanged this year: Most of our panelists expect the Bank to stand pat throughout 2026. With inflation expected to average close to the 2.0% target and GDP growth set to be solid, the BOK should be under limited pressure to move the base rate in either direction. However, some panelists see hikes and a few see cuts.