BoK says rate decision was unanimous and that Middle East conflict poses risks to growth

Says:

• Growth likely to be below 2% this year
• To thoroughly assess external and internal conditions including the Middle East situation
• To closely monitor impact on inflation, growth and financial stability
• Necessary to remain cautious about FX volatility
• Inflation likely to be significantly above 2.2% this year
• Necessary to keep monitoring house prices and household debt
• FX market volatility and government policy measures to impact inflation path
• Uncertainty extremely high over economic outlook
• Trade uncertainties, Middle East conflict and chips sector momentum to impact growth ahead.
• Raises 2026 GDP growth forecast to 2.0% from 1.8% and CPI forecast to 2.2% from 2.1%.