Bank of Korea expectedly keeps rates steady at an almost three-year low

Bank of Korea expectedly keeps rates steady at an almost three-year low


This photo taken on Nov. 24, 2022 shows the building of Bank of Korea BOK in Seoul, South Korea. South Korea’s central bank on Thursday raised its policy rate to curb inflation, delivering six back-to-back rate hikes for the first time. (Photo by Wang Yiliang/Xinhua via Getty Images)

Wang Yiliang | Xinhua News Agency | Getty Images

South Korea’s central bank held its policy rate at 2.5%, keeping it steady at an almost three-year low.

South Korea’s economy contracted by 0.2% quarter on quarter in the first three months of this year due to weak construction activity and softening export growth, while it remained flat on an year on year basis.

Goldman Sachs in a note last week said that introduction of new mortgage lending restrictions would “open the door” for a rate cut in August.

Stock Chart IconStock chart icon

hide content

Housing prices in Seoul spiked over 19% in June on an annualized basis, according to Goldman, prompting financial authorities to step in with measures to address rapidly expanding household loans.

The firm said that recent housing market developments had heightened the BOK’s concerns about financial stability, noting that household loan growth surged to 6 trillion won ($4.27 billion) in May — the fastest pace since last October — and is estimated to have reached 7 trillion won in June.

South Korea’s Kospi was up 0.74%, while the won strengthened marginally to trade at 1,372.48 against the dollar.

The country could face more economic headwinds as U.S. President Donald Trump has threatened to impose 25% tariffs on all South Korean imports starting Aug. 1 if the country fails to reach a trade deal with Washington.



Source

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%
World

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%

The Defense Department will become the largest shareholder in rare earth miner MP Materials after agreeing to buy $400 million of its preferred stock, the company said Thursday. MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California, about 60 miles outside Las Vegas. Proceeds from the Pentagon investment […]

Read More
The three energy topics on everyone’s lips at the OPEC seminar
World

The three energy topics on everyone’s lips at the OPEC seminar

The blue logo of the Organization of the Petroleum Exporting Countries (OPEC) is displayed on the facade of its headquarters building in Vienna, Austria, on June 9, 2025. Nurphoto | Nurphoto | Getty Images OPEC says more than 1,000 ministers, CEOs, policymakers, analysts and journalists were invited to its biennial seminar to discuss key trends […]

Read More
Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed
World

Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed

The smelting area, where the copper is smelted and then placed in molds and cooled, at the Codelco El Teniente processing facility in Machali, Chile, on Wednesday, April 2, 2025. Bloomberg | Bloomberg | Getty Images London-listed mining firms bounced on Thursday, shaking off recent losses to drive the U.K.’s FTSE 100 index to a […]

Read More