The Bank of Korea (BoK) held its base rate at 2.50% for the fifth consecutive meeting in January 2025, the first policy session of the year, as expected. The decision came amid concerns over a weakening exchange rate and an overheated housing market. The Korean won has weakened nearly 2% during the first two weeks of the year, increasing the risk of higher consumer prices. The latest data showed that South Korea’s inflation stood at 2.1% in 2025, slightly lower than 2.3% in 2024 but still above the BoK’s 2% target. Since October 2024, the BoK has cut rates by a cumulative 100 basis points to support economic growth.