The Bank of Korea maintained its benchmark interest rate on Friday, adopting a cautious stance as uncertainty in the Middle East prompted it to balance risks from inflation, a weak currency, and slowing economic growth.

At its latest rate-setting meeting in Seoul, the Monetary Policy Board (MPB) kept the base rate unchanged at 2.5%.

This marks the seventh consecutive meeting in which the Bank of Korea has held interest rates steady, even as it remains in an easing cycle.

The central bank began implementing accommodative monetary policy in October 2024 and has since lowered the benchmark rate by a total of 100 basis points from 3.5% to support economic growth. However, it has kept rates unchanged since July 2025.