Anchor: The Bank of Korea(BOK) revised its 2025 growth forecast up to one percent from its August estimate of zero-point-nine percent. The central bank's monetary policy board, meanwhile, froze the key interest rate at two-point-five percent for the fourth straight time.
Choi You Sun reports.

Report: The Bank of Korea(BOK) adjusted this year's growth outlook to one percent, up zero-point-one percentage points from its previous forecast in August.

The adjustment on Thursday appears to reflect the BOK's third-quarter growth estimate of one-point-two percent, which was zero-point-one percentage points higher than its earlier projection.

The central bank expects the economy to expand one-point-eight percent in 2026, and one-point-nine percent in 2027, remaining in the one percent range for three consecutive years.

The adjustment follows the BOK monetary policy board's decision to hold its key interest rate steady at two-point-five percent for the fourth time in a row after cutting the rate by 25 basis points in May.

The central bank said it had closely monitored inflationary acceleration and assessed that the continued rise in the won-dollar exchange rate was driving up import prices.

The monetary board also cited improved domestic consumption and exports as reasons behind its decision.

As for the direction of the lending rate in three months, the six board members excluding Gov. Rhee Chang-yong were evenly split between a rate cut and a rate freeze. None mentioned the need for a rate hike.

Rhee also cited overseas stock investments as a factor behind the rising won-dollar exchange rate and said it would be appropriate for a four-way body comprising the finance ministry, the welfare ministry, the BOK, and the National Pension Service to respond.
Choi You Sun, KBS World Radio News.