BOK freezes key rate amid surging household debt, home prices

SEOUL, July 10 (Yonhap) -- South Korea's central bank kept its benchmark interest rate unchanged Thursday to ensure financial stability amid concerns about rapid increases in housing prices and household debt. In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held its key rate steady at 2.5 percent during a rate-setting meeting in Seoul. The move followed a rate cut in May, when the BOK lowered the policy rate by 25 basis points to support economic growth amid sluggish domestic demand and uncertainty stemming from the United States' sweeping tariff measures. In this file photo, Bank of Korea (BOK) Gov. Rhee Chang-yong bangs the gavel to open a Monetary Policy Board meeting at the central bank in Seoul on May 29, 2025. (Pool photo) (Yonhap) graceoh@yna.co.kr(END)

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SEOUL, July 10 (Yonhap) — South Korea’s central bank kept its benchmark interest rate unchanged Thursday to ensure financial stability amid concerns about rapid increases in housing prices and household debt.

In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held its key rate steady at 2.5 percent during a rate-setting meeting in Seoul.

The move followed a rate cut in May, when the BOK lowered the policy rate by 25 basis points to support economic growth amid sluggish domestic demand and uncertainty stemming from the United States’ sweeping tariff measures.