The Bank of Korea has decided to keep its benchmark interest rate steady at 2.75%, aligning with market expectations. This decision comes as the central bank seeks to support the economy, which is facing significant challenges due to U.S. tariffs.
In April, the Bank of Korea opted to maintain the rate unchanged, a move anticipated by many analysts. Previously, the bank had lowered rates in February and in October and November of 2024, but it has now paused this downward trend.
A survey conducted among 25 economists revealed that 20 of them expected no change in April's interest rate. They cited the uncertainty stemming from unpredictable trade statements by President Trump as a reason for the central bank's cautious approach. The Bank of Korea likely aims to assess the effects of previous rate cuts before making any further adjustments.
