The Bank of Korea held its benchmark interest rate steady to avoid spurring a housing market rally that threatens to cause financial imbalances by driving mortgage debt levels higher.
The central bank held its seven-day repurchase rate at 2.5% on Thursday, a decision that aligned with the expectations of 23 of 25 economists surveyed by Bloomberg, with the other two predicting a quarter-point cut. The move extends a pause that began in July after four reductions since October last year.