South Korea’s central bank is expected to keep its benchmark interest rate unchanged in the next meeting on June 21, according to a Reuters poll of economists. The Bank of Korea (BOK) has said that stability remains the top priority as it navigates a softening global economy and fluctuating domestic demand.
In the poll, six respondents were surveyed. Thirty‑four percent forecast that the BOK will hold the policy rate, 33 percent believe it will cut, three percent support a hike, and 30 percent think it will hold. Fifteen percent of respondents have little confidence that the central bank will pause the current path.
The BOK’s policy rate sits at 3.5%, a level that has been defended heavily in its latest policy statement. The poll suggests the bank may keep that rate level for now and could consider a modest trim of around 10 basis points in November. This aligns with the BOK’s past practice of waiting for clearer signals of inflation easing before cutting rates.
Economic forecasts point to inflation easing to about 3.2 % in 2025, which is below the 1‑2 % target range the bank aims for, but still slightly too high in the eyes of some analysts. The BOK’s decision will also hinge on global conditions. The ongoing slowdown in China and tentative US policy moves add uncertainty to export‑heavy South Korea’s economy.
If the BOK holds rates today, market watchers will bandwagon, taking a cautious stance until the central bank has a clearer view of price stability and economic fundamentals. The next milestone will be the November meeting, where the article’s poll expects the BOK could adopt a small rate cut to support growth while monitoring inflation.
Key terms for readers and SEO:
- Bank of Korea, policy rate, interest rate, monetary policy, inflation, central bank, Korea economy, global slowdown, Reuters poll, October/November rate cut, policy decisions, stability focus, rate decision.
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