The BOK has kept its rate at 3.5% since early 2023. While inflation has trended lower all year, ultimately dipping below the BOK’s target, officials extended the hold pattern due to concerns over hot housing markets in Seoul. With apartment prices and transactions having lost momentum since August, the bank is now seen as having scope to shift its focus to reviving domestic consumption.
The Bank of Korea (BOK) is widely expected to cut its benchmark interest rate on signs housing markets are cooling and after inflation eased below its target, joining an increasing number of global peers in starting an easing cycle to safeguard economic momentum.
20 of 22 economists surveyed by Bloomberg expect South Korea’s central bank to cut the rate by a quarter-percentage-point to 3.25% when the board gathers Friday. The remaining two predicted authorities will extend a record-long holding pattern until they see clearer signs that property prices will ease enough to discourage households from ramping up debt.
