Monetary Policy Decision

The Monetary Policy Board of the Bank of Korea decided today to leave the Base Rate unchanged at 2.50% for the intermeeting period. With inflation remaining stable, economic growth, while there is still high uncertainty surrounding the economic growth outlook, has shown modest improvement, mainly driven by domestic demand, and movements in housing prices in Seoul and its surrounding areas and in household debt need to be further monitored. The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate and to assess any changes in domestic and external conditions.

The currently available information suggests that, despite progress made on trade negotiations between the U.S. and major economies, the global economy is expected to gradually slow in growth and experience a divergence in inflation trajectories across countries, as the impact of tariff increases starts to materialize. In global financial markets, long-term U.S. Treasury yields and the U.S. dollar index rose, and then fell due to the heightened expectation of an interest rate cut by the U.S. Federal Reserve. Stock prices in major economies have risen as uncertainty regarding tariff negotiations eased. Looking ahead, the global economy and financial markets will be influenced by developments in trade negotiations between the U.S. and China, by the prospects for product-specific tariffs, and by changes in monetary policies in major economies.


※ Please refer to the attached files.