South korea: South Korea's central bank on Thursday signalled an end to its current easing cycle after keeping its benchmark interest rate unchanged, prioritising financial stability in its first policy meeting of the year as the won hovered around 16-year lows. Since October 2024, the Bank of Korea has lowered its benchmark interest rate by 100 basis points from 3.5 percent to bolster economic growth.
According to Qatar News Agency, the weak won and volatile foreign exchange market remain key concerns for policymakers. This decision comes after the Consumer Price Index (CPI) rose 2.3 percent year-on-year in December 2025, keeping inflation above the central bank's 2 percent target for the fourth consecutive month.
The Bank of Korea expects the domestic economy to grow by 1.8 percent this year, up from about 1 percent last year, on the back of strong exports and improved private consumption.