Overview
- The central bank kept its policy rate unchanged for a third straight meeting, and Governor Rhee said four of six board members are open to another cut within three months.
- The dovish signal pushed stocks higher and sent the won weaker toward recent lows against the dollar.
- Officials highlighted renewed housing-market heat and exchange-rate volatility as key constraints on further easing.
- The government extended stricter property rules to all 25 Seoul districts and lowered mortgage caps to as little as 200 million won to cool prices and borrowing.
- Record household loans and uncertainty over U.S.–Korea tariff and investment negotiations, including a pledged $350 billion fund, were cited as risks even as exports, notably semiconductors, support growth and inflation hovers near 2%.