Overview
- The central bank kept the base rate at 2.5% for a fifth straight meeting, pausing further easing as the won trades in the mid‑to‑high 1,400s per dollar near multiyear lows.
- Officials flagged financial‑stability and inflation risks, noting consumer prices rose 2.3% in December and warning that a rate cut could intensify capital outflows.
- A Bank of Korea official reported a net US$19.6 billion foreign‑currency outflow in January–October 2025, with residents’ overseas securities purchases surging to US$117.1 billion.
- Finance Minister Koo Yun‑cheol said authorities are tackling one‑sided FX moves, speeding work on a new National Pension Service framework and coordinating short‑term stabilization steps.
- Market factors weighing on the currency include heavy foreign stock selling and a weaker yen, while a KOFIA survey showed more experts expect further won depreciation and almost all anticipated today’s hold.