Bank of Korea holds interest rate at 2.5% amid weak won
South Korea’s central bank maintained its benchmark rate at 2.5 percent on Thursday as the won fell to a six-month low against the dollar. Five of six monetary policy board members voted to hold rates steady while the currency weakened past 1,439 per dollar by the close of trading.
Bank of Korea Governor Rhee Chang-yong said three-quarters of the won’s 35-point decline since August stems from regional pressures and domestic concerns about American tariff talks and a proposed $350 billion investment package. The remaining quarter reflects broader dollar strength across global markets.
Officials cited risks in Seoul’s property sector as another reason to pause rate cuts after two reductions earlier this year. Analysts at Kiwoom Securities and Samsung Securities expect the next rate decrease will occur in early 2026 rather than in November.
The won closed at 1,439.6 per dollar, its weakest finish since late April. One board member supported a quarter-point reduction.
