Central Banks

BOK Keeps Rate-Cut Stance Option Open for 2026 as Risks Persist

The Bank of Korea (BOK) complex in Seoul.Photographer: Jean Chung/Bloomberg

South Korea’s central bank said it will keep the door open to further interest rate cuts next year, while increasing vigilance over financial stability risks from a weak won and rising housing prices.

The Bank of Korea said any decision on additional easing will hinge on a comprehensive assessment of inflation and growth, as well as evolving risks to financial stability, according to its statement for monetary policy in 2026 released Thursday.