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Bank of Korea

KRW Β· Official Website

Latest Statement

βš–οΈ Neutral
Monetary Policy Decision & Opening Remarks to the Press Conference (February 26, 2026)
2026-02-26

The Bank of Korea's monetary policy decision emphasizes a cautious approach to interest rates, aiming to balance economic growth while managing inflationary pressures. The central bank remains vigilant in monitoring economic indicators to adjust its policy as necessary.

Bank Profile

Mandate
Price stability (2% CPI), financial stability
Decision Types
Base Rate, Open market operations, Lending facilities
Policy Instruments
Base Rate, Aggregate Credit Ceiling Loans, Open market operations, Reserve requirements
Target Indicators
CPI inflation (2%), Core inflation, Output gap, Financial stability indicators
Communication Style
Detailed monetary policy statements, board member dissent visible, press conferences
Committee
Monetary Policy Board - 7 members (Governor, Senior Deputy Governor, 5 members)

Economic Indicators

Policy Rate2.50%
USD/KRW1427.90
GDP Growth3.2%
M2 Growth5.8%
10Y Yield3.48%
2y10y Spread+0.83%
HISTORICAL TRENDS
Policy Rate
3.502.50
FX Rate
1k1k
CPI
5.090.38
GDP
4.61-0.70
10Y Yield
4.272.66
2Y-10Y Spread
Stance
50.00.00

Key Commodities

Top traded commodities for South Korea

Commodity Price 1D 30D
Brent Crude Oil 71.90 USD/barrel -1.2% +9.9%
Copper 12,986.61 USD/mt +10.1% +53.2%

Recent Statements

Minutes of the Monetary Policy Board Meeting (January 2026) βš–οΈ Neutral
2026-02-03
⚑ Rate
↑0 ↓0 β†’1
πŸ“ Classified Sentences
⚑ Rate Holdmp_interest_rate
"All members expressed the view that, in overall consideration of the domestic and international financial and economic environment, it would be desirable to leave the Base Rate unchanged at the current level of 2.50% until the next Monetary Policy Board meeting."
BOK Working Paper No.2026-3, U.S.-Korea Yield Synchronization and Its Implications for Monetary Policy Transmission βš–οΈ Neutral
2026-01-27
BOK Working Paper No.2026-2, An Analysis of Mortgage Borrowers’ Interest Rate Choice βš–οΈ Neutral
2026-01-26
Monetary Policy Decision & Opening Remarks to the Press Conference (January 15, 2026) βš–οΈ Neutral
2026-01-15
⚑ Rate
↑0 ↓0 β†’2
πŸ“ Classified Sentences
⚑ Rate Holdmp_interest_rate
"The Board, therefore, judged that it is appropriate to maintain the current level of the Base Rate while assessing developments in the domestic and external policy environments."
⚑ Rate Holdmp_interest_rate
"The Board thus judged that it is appropriate to maintain the current level of the Base Rate and to evaluate the changes in domestic and external policy conditions."
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