Bank of Korea Maintains Interest Rate at 3.5% Amid Inflation Concerns

The central bank's decision reflects ongoing concerns about inflation and the economic impact of recent political developments.

• The Bank of Korea held its benchmark interest rate steady at 3.5%, marking the 10th consecutive hold.
• This decision comes in the wake of a significant electoral defeat for the ruling party, highlighting economic anxieties among voters.
• Inflation remains above the bank's 2% target, with recent data showing a 3.1% increase in the consumer price index.
• Exports continue to grow, driven by strong sales in sectors like semiconductors, supporting the decision to maintain higher rates.
• Upcoming changes in the bank's board, with key members' terms ending soon, could influence future policy directions.

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