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South Korea holds rates steady as won weakness pressures inflation outlook
South Korea’s central bank holds rates at 2.
The Bank of Korea kept its benchmark rate unchanged at 2.50% for the fourth straight meeting, citing mounting currency pressure from a weak won. The central bank dropped its prior easing bias, signaling potential end to its rate cut cycle. It raised the nation’s growth and inflation forecasts for 2025 to 1.0% and 2.1% respectively, adding that further rate cuts will depend on currency and price pressure developments.