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Bank of Korea Poised to Hold Rate at 2.50% This Week as Weak Won, Hot Housing Delay Cuts

Currency weakness plus elevated home prices leave policymakers prioritizing financial stability over faster easing.

Overview

  • Reuters reports 32 of 36 economists expect no change on Nov. 27, with four forecasting a 25-basis-point cut.
  • Yonhap Infomax says all 18 local analysts surveyed anticipate a hold at 2.5% for the upcoming decision.
  • Most economists now see the next rate reduction in the first quarter of 2026, reflecting prolonged caution.
  • A subset still projects near-term easing, with 9 of 18 in the Yonhap poll expecting a 25-basis-point cut within three months.
  • Recent data complicate further easing, with Q3 GDP growth at 1.2%, October inflation at 2.4%, and the won near 1,475.6 per dollar.