Bank of Korea Holds Base Rate at 2.50% for Fourth Consecutive Meeting at Year-End

The Bank of Korea held its base rate at 2.50% at its Monetary Policy Board meeting on 27 November 2025, marking the fourth consecutive meeting at which policymakers have opted to keep the benchmark rate unchanged. The November decision was the final meeting of the year for the BoK's rate-setting body.

The run of four successive holds follows four cuts between October 2024 and May 2025 - two in 2024 and two in 2025 - that took the rate from 3.50% to 2.50%.

GDP OUTLOOK RAISED TO 1.8% FOR 2026 Alongside the rate decision, the Bank of Korea raised its GDP growth forecast for 2026 to 1.8% from 1.6%. The upgrade reflects semiconductor exports and an expected recovery in consumption and construction investment, although US tariffs and external uncertainty remain risks.

HOUSING AND CURRENCY CONCERNS

The Bank of Korea has flagged housing-market stability and the Korean won's exchange rate as concerns.

The next scheduled Monetary Policy Board meeting falls in the new year.