The Bank of Korea decided to maintain the benchmark interest rate for the third consecutive time at the Financial Monetary Committee (FOMC) meeting on the morning of the May 25, the local media outlet KBS reported.

The committee will decide whether to adjust the current rate of 3.5%. Financial institutions predict a high possibility of the rate remaining unchanged, following the previous decisions in February and April. This is mainly due to the stabilizing inflation rate, which has decreased from 5% at the beginning of the year to 3.7% in April.

The inflation rate has not been in the 3% range since February last year, marking a 14-month low. The expected inflation rate, which indicates the consumer's anticipation of future inflation levels, has also decreased from 3.7% to 3.5% this month. Analysts suggest that the Bank of Korea will maintain the current interest rate rather than responding with further hikes, taking into consideration the declining inflation and the Federal Reserve's indication of a possible freeze in May.

Source(KR): KBS