The Bank of Korea held its policy rate at 2.50 percent. Governor Lee Chang-yong (이창용) said uncertainty stemming from the war in the Middle East had widened sharply, and the central bank would watch developments rather than rush a policy decision. He said inflation faces stronger upward pressure while growth faces downward pressure, and market volatility has increased. Lee said this year’s inflation could exceed the previous 2.2 percent forecast by a large margin.

The Bank of Korea\'s Monetary Policy Board on Thursday kept the benchmark interest rate unchanged at 2.50 percent and maintained its monetary policy stance. The decision reflected heightened uncertainty as the Middle East war increased both inflationary and growth-slowing pressures and widened volatility in financial and foreign exchange markets. The board said domestic growth faced downside risks, inflation pressures were rising, and future policy would consider price and financial stability.