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28.08.202501:09:42UTC+00South Korea Holds Key Rate Steady

In August 2025, the Bank of Korea (BOK) decided to maintain its base interest rate at 2.50%, following an anticipated second pause after a rate cut in May. This decision was largely influenced by the need to closely observe Seoul’s housing market and the increase in household debt. Despite the implementation of stricter mortgage restrictions in June, expectations for housing prices experienced a rebound. Notably, Seoul apartment prices saw a rise of 0.14% in early August, marking the first increase in six weeks, before subsequently easing to 0.10% and then 0.09%. Additionally, household loans at major banks increased by 1.91 trillion won in early August, reaching a total of 760.88 trillion won. This amounted to an average growth of 270 billion won per day, which was more than double the rate observed in July.

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