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Bank of Korea Expected to Hold 2.50% Rate Through 2026, Reuters Poll Finds

A broad consensus points to a prolonged pause driven by currency weakness alongside a hot housing market.

Overview

  • All 34 economists in a Feb. 19–23 Reuters poll forecast no change at the Feb. 26 meeting, keeping the base rate at 2.50%.
  • Every one of the 30 economists who offered end-2026 views expects the 2.50% setting to hold through 2026, reversing January projections that still allowed for another cut.
  • Policymakers’ stance reflects foreign‑exchange pressures, with the won down about 5.2% since last May’s cut and drawing U.S. Treasury scrutiny.
  • Authorities have moved to curb volatility using tools such as an FX swap line between the Bank of Korea and the National Pension Service.
  • Housing risks continue to build as Seoul apartment prices rose for a 55th straight week, up 0.15% most recently, even as January inflation eased to roughly 2.0%.