South Korea central bank holds rates, as expected

SEOUL - The Bank of Korea kept its policy interest rate steady on Thursday, as it weighs geopolitical risks against a weakening won and resurgent inflation that point to higher rates ahead.

The seven-member monetary policy board at the central bank voted to keep its benchmark interest rate unchanged at 2.50%, as expected by 30 of 32 economists polled by Reuters. The two outliers forecast a rate rise.

Governor Shin Hyun Song will hold a press conference at 0210 GMT.

(Reporting by Cynthia Kim; Editing by Muralikumar Anantharaman)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 27, 2026 at 8:58 PM.