Bank of Korea Holds for Now, Lays Ground for Rate Cut After Fed

The Bank of Korea paved the way for a possible interest rate cut after an expected move by the Federal Reserve next month while taking advantage of a modest uptick in the economy to hold borrowing costs steady for now.

The central bank kept its seven-day repurchase rate at 2.5% on Thursday, a decision that aligned with the expectations of 22 of 23 economists surveyed by Bloomberg.

The BOK said in a statement that it maintained its rate cut stance, but would hold rates for the time being as it monitors household debt risks and the impact of US tariffs. ...