Summary
- The Bank of Korea announced that the current base rate will remain at 2.75% per annum.
- It was analyzed that foreign exchange market volatility and the increase in household loans affected the interest rate policy.
- The pace of rate cuts by the U.S. Federal Reserve was also stated to be a major factor in this decision.
The Monetary Policy Committee of the Bank of Korea held a meeting on the 17th to decide to maintain the current base rate at 2.75% per annum.
It was analyzed that the volatility in the foreign exchange market, due to issues such as the imposition of mutual tariffs by the United States, affected the monetary policy. The fluctuations in household loans in February, the uncertain timing of the supplementary budget execution, and the pace of rate cuts by the U.S. Federal Reserve (Fed) were also observed to have influenced this decision.
Reporter Dowook Jwa leftking@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
