In the statement released on the 15th after keeping the benchmark rate unchanged at 2.5% a year, the Bank of Korea's monetary policy committee removed the phrase "possibility of a rate cut." This is interpreted to mean there may be no additional cuts.

Rhee Chang-yong, governor of the Bank of Korea, strikes the gavel during the plenary meeting of the the Bank of Korea's monetary policy committee at the Bank of Korea in Jung-gu, Seoul, on the 15th. /Courtesy of News1

The Monetary Policy Board said in its Nov. 27 statement last year, "We will keep open the possibility of a rate cut, but will decide whether and when to cut further while closely reviewing changes in domestic and external policy conditions and the situations for growth, inflation, and financial stability."

However, this statement said, "We will support the recovery in growth, and in the process, make decisions while closely reviewing changes in domestic and external policy conditions, the resulting inflation trajectory, and the state of financial stability." With the expression regarding whether to cut rates removed, some interpret this as the likelihood of a benchmark rate cut being significantly reduced for the time being or effectively closed.

Meanwhile, the Monetary Policy Board said it kept rates unchanged because "with inflation expected to gradually stabilize, growth to continue improving, and financial stability risks persisting, it is appropriate to maintain the current level of the benchmark rate while reviewing domestic and external policy conditions."

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