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BOK expected to keep interest rate unchanged this week: Poll

Published: 12 Jan. 2026, 16:17

Bank of Korea Gov. Rhee Chang-yong delivers a New Year's address at the annual kick-off ceremony at the central bank's building in Jung District, central Seoul, on Jan. 2, 2026. [YONHAP]

The Korean central bank is widely expected to keep its policy rate unchanged this week in a bid to support the weakening currency and ease an unsettled property market, a poll showed Monday.

According to a survey by Yonhap Infomax, the financial news arm of Yonhap News Agency, all 25 local analysts and experts polled said the Bank of Korea (BOK) will leave its benchmark rate unchanged at 2.5 percent at its policy meeting Thursday.

A separate Yonhap News Agency survey of six additional experts also found unanimous expectations for a rate freeze this month.

The BOK's Monetary Policy Board has held the key rate steady for four consecutive meetings through November, though the central bank entered an easing cycle in October 2024.

"Factors undermining financial stability persist, including the weak won and overheated sentiment in the property market," Yoon Yeo-sam, an analyst at Meritz Securities, said.

"Economic growth is expected to improve to above the 2 percent range this year, while inflation is running in the low to mid-2 percent range, making the current environment unfavorable for rate cuts."

The won has hovered near the closely watched 1,450 won level per dollar despite various measures by authorities to support the currency. On Monday, it opened at 1,461.3 won per dollar, down 3.7 won from the previous session.

Yonhap