Lee Chang-yong, the Governor of the Bank of Korea, noted during a press conference after the Monetary Policy Committee meeting on the 28th that "five out of six committee members believe that the possibility of lowering the benchmark interest rate to below 2.50% should be kept open within three months."
Governor Lee mentioned that "these members pointed out that the Korean economy is expected to continue to grow below its potential level" and added, "they suggested keeping open the possibility of further rate cuts while monitoring both upside and downside risks as well as financial stability."
He also stated that "the remaining member believes there is a high likelihood of maintaining the 2.5% rate" and noted that "one member indicated that it will take sufficient time for financial stability risks to be adequately resolved, thus emphasizing the need to assess the economic situation within three months."
That day, the Monetary Policy Committee decided to freeze the benchmark interest rate at 2.50%. This marks a continuation of the wait-and-see approach, maintaining rates consecutively since May. The Bank of Korea previously lowered rates by 0.25 percentage points in October and November of last year and has alternated between holding rates steady (in January, April, and July) and lowering them (in February and May) this year.