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Bank of Korea Signals End to Easing Cycle After Standing Pat to Safeguard FX Stability
The Bank of Korea kept the rate at 2.5 percent to manage won volatility and inflation, with consumer prices above target for four months, officials said.
- On Jan. 15, 2026, the Bank of Korea held its benchmark interest rate at 2.5 percent in Seoul, marking the fifth consecutive on-hold decision as Gov. Rhee Chang-yong presided.
- Facing a weak currency and rising inflation, the Bank of Korea paused due to a weakened won, foreign exchange market volatility, rising import prices, and recent government housing regulations and household lending caps.
- The won fell in a 10‑session losing streak to 1,477.5 per U.S. dollar before intervention pushed it back toward 1,420 won, with external shocks accounting for about three‑quarters of the weakness.
- The Monetary Policy Board voted unanimously to hold rates, with one of six members suggesting the possibility of cuts within three months, while analysts said the BOK could prioritize FX stability based on the Bank of Korea growth projection.
- Rhee warned that beyond the three-month time frame, uncertainty remains too high to make any definitive call, adding that the Korean won is markedly undervalued and South Korea's substantial external assets reduce crisis risk despite domestic strains.
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BOK holds key rate steady for 5th straight session to defend weak won
Korea's central bank again left its benchmark interest rate unchanged Thursday as a weakened won and rising inflation concerns limited room for further easing. In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held the key rate at 2.5 percent at its rate-setting meeting in Seoul, marking the fifth consecutive on-hold decision since July. The pause comes despite the central bank remaining in a monetary easing cyc…
·Korea, Republic of
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BOK signals an end to rate cut cycle as won shows sustained weakness
The Bank of Korea (BOK) signaled an end to the rate-cut cycle on Thursday amid concerns over a persistently weak won and escalating housing prices as it kept the benchmark rate steady at 2.50 percent.
·Seoul, Korea, Republic of
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Total News Sources9
Leaning Left1Leaning Right2Center2Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
Factuality
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