Bank of Korea Maintains Interest Rate, Cautions on Premature Rate Cut Expectations

The Bank of Korea holds its benchmark interest rate steady at 3.5%, emphasizing vigilance against inflation despite economic growth.

The Bank of Korea kept its benchmark interest rate unchanged at 3.5%, citing concerns over inflation and geopolitical risks.
Economic forecasts remain steady with a growth prediction of 2.1% and an inflation rate of 2.6% for the year.
The central bank warns against premature expectations for rate cuts, aligning with global central banks' cautious stance.
Exports continue to fuel economic activity, but the BOK is wary of easing monetary policy too soon due to potential inflation resurgence.
Speculation about policy shifts in the US and Europe adds to the uncertainty, with the BOK likely to delay rate cuts until the second half of the year.