The central bank has kept the key interest rate steady at three-point-five percent for the 13th consecutive time since February 2023. 

The decision, made during the Bank of Korea’s(BOK) Monetary Policy Board rate-setting session on Thursday, maintains a record two percentage point gap with the U.S. Federal Reserve's rate.

The BOK has maintained the key rate for 19 months and nine days, a record both in terms of consecutive rate freezes and duration since the establishment of the central bank. 

The rate freeze comes amid soaring household debt and housing prices. 

According to the Korea Real Estate Board, housing prices in Seoul rose zero-point-76 percent in July, the largest monthly gain in four years and seven months. 
 
Outstanding household loans from the country’s major banks came to 719-point-nine trillion won as of last Wednesday, surging by over four trillion won in just two weeks.

The central bank revised its growth outlook for this year down to two-point-four percent from two-point-five percent. 

It also lowered its inflation outlook for this year to two-point-five percent from its earlier estimate of two-point-six percent.