Overview of the Decision
In a widely anticipated move, the Bank of Korea (BOK) decided to keep its benchmark interest rate unchanged at 2.5% during its latest monetary policy meeting in Seoul on October 23, 2025. The decision reflects the central bank’s focus on maintaining financial stability in the face of a surging housing market and a depreciating currency.
Monetary Policy Context
This marks the third consecutive meeting where the BOK has opted to hold the key rate steady. Despite the pause, the bank has emphasized its commitment to supporting economic recovery through monetary easing. According to Yonhap News Agency, the BOK initiated its easing cycle in October 2024, reducing the rate by a total of 100 basis points, with the most recent cut occurring in May 2025.
Image Source: WAM
Global Economic Influence
The decision comes in the context of global monetary policy adjustments. At its September 2025 meeting, the U.S. Federal Reserve lowered its benchmark rate by 25 basis points to a range of 4-4.25% and indicated plans for two additional cuts before the end of the year. The BOK’s cautious approach contrasts with these global trends, prioritizing stability over further rate reductions.
Keyword: Bank of Korea Interest Rate
Meta Description: The Bank of Korea maintains its benchmark interest rate at 2.5% to ensure financial stability amid a booming housing market and weakening currency, marking its third consecutive hold.