The Bank of Korea is anticipated to keep its base interest rate steady at 2.50% on November 27, as economic factors such as a weak won and a robust housing market deter further monetary easing. According to a Reuters poll, 32 out of 36 economists predict the central bank will hold the rate, with the next potential cut expected in early 2026.
Despite South Korea's 1.2% GDP growth in the third quarter and a 2.4% inflation rate in October, the central bank remains cautious about exacerbating financial imbalances or foreign exchange volatility. Economists forecast at least one rate cut by March 2026, with rates likely stabilizing around 2.25% throughout the next year.
Bank of Korea Expected to Maintain Rate at 2.50% Amid Economic Concerns
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