Will the BOK Maintain Interest Rates This Week?
Click to start listening
Synopsis
As the South Korean economy faces challenges with a weakening currency and a volatile property market, the BOK is expected to keep interest rates unchanged. This decision could significantly impact economic stability. Stay informed on the latest economic developments.
Key Takeaways
- The BOK is expected to maintain interest rates at 2.5 percent.
- Unanimous predictions among analysts for a rate freeze.
- The Korean won has weakened significantly against the U.S. dollar.
- Focus on financial stability amid economic uncertainties.
- Potential future rate cuts anticipated within three months.
Seoul, Nov 24 (NationPress) The Bank of Korea is anticipated to maintain its policy interest rate this week to safeguard financial stability in light of a declining currency and a turbulent property market, according to a recent poll.
A survey by Yonhap Infomax, the financial news division of Yonhap News Agency, revealed that all 18 local analysts consulted forecasted that the Bank of Korea (BOK) will keep the base rate steady at 2.5 percent during its rate-setting meeting scheduled for Thursday, as reported by Yonhap.
Additionally, a separate poll conducted by Yonhap News Agency with six more experts also indicated unanimous expectations for a freeze on rates this month.
“Given the robust apartment prices in Seoul and the continued depreciation of the currency, it is prudent for the BOK to maintain the base rate,” commented Park Jung-woo, an economist at Nomura Securities.
The BOK's Monetary Policy Board has maintained its key rate steady for three consecutive meetings since October, although it has highlighted the necessity of supporting economic recovery through monetary easing. The central bank has been in an easing cycle, with the last key rate cut occurring in May.
The Korean won has depreciated significantly against the U.S. dollar, influenced by substantial foreign stock sales and overall dollar strength. The currency closed at 1,475.6 won per dollar on Friday, marking its weakest position since April.
“As the central bank is widely expected to revise its growth forecasts for this and next year upwards, the focus is likely to shift towards ensuring financial stability,” stated Choi Ji-uk, an economist at Korea Investment & Securities.
The BOK had previously estimated economic growth at 0.9 percent for 2025 and 1.6 percent for the upcoming year, with the revised outlook set to be unveiled on Thursday.
In terms of potential future rate cuts, nine out of the 18 participants in the Yonhap Infomax survey anticipate a 25-basis-point reduction within the next three months.
Point of View
I believe it is essential to provide unbiased coverage of the BOK's anticipated decision. Maintaining interest rates is a vital step towards ensuring economic stability in South Korea, especially amidst fluctuating market conditions. Our focus remains on delivering accurate and timely information to our readers.
NationPress
26/11/2025
Frequently Asked Questions
What is the current interest rate set by the BOK?
The current interest rate set by the Bank of Korea is 2.5 percent.
Why is the BOK expected to keep rates unchanged?
The BOK is expected to maintain rates to ensure financial stability amid a weakening currency and an unsettled property market.
What have analysts predicted regarding future rate cuts?
Nine out of 18 analysts surveyed anticipate a 25-basis-point reduction in rates within the next three months.
How has the Korean won performed recently?
The Korean won has weakened significantly against the U.S. dollar, closing at 1,475.6 won per dollar, its weakest level since April.
What is the BOK's growth forecast for the coming years?
The BOK previously forecasted economic growth of 0.9 percent for 2025 and 1.6 percent for the upcoming year.
