Bitcoin 
Ethereum 
Tether 
XRP 
BNB 
USDC 
Solana 
TRON 
Lido Staked Ether 
Figure Heloc 
The Bank of Korea is set to hold rates at 2.50% this week and through 2026 as FX and housing risks outweigh easing pressures.Summary:All 34 economists see BOK holding at 2.50% on February 26Rates forecast to remain unchanged through 2026Won weakness and housing risks curb easing appetiteInflation at 2.0% in January, in line with targetShift from January poll that had pencilled in further cutsSouth Korea’s central bank is expected to keep its base rate steady at 2.50% at its February 26 meeting and maintain that level through 2026, according to a Reuters poll of economists.All 34 respondents surveyed between February 19–23 forecast the Bank of Korea will leave rates unchanged this week. All 30 economists who provided end-2026 projections also expect policy to remain at 2.50% throughout the year, marking a notable shift from January when a sizeable minority still anticipated at least one additional cut.The policy pause comes as authorities grapple with currency volatility and financial stability risks. The Korean won has remained under pressure, declining 5.2% since the last rate cut in May and drawing scrutiny from the U.S. Treasury. Policymakers have responded with measures aimed at curbing excessive FX volatility, including activation of a swap line between the Bank of Korea and the National Pension Service.At the same time, housing market momentum has raised red flags. Seoul apartment prices have risen for 55 consecutive weeks, climbing 0.15% in the latest week, heightening concerns about financial imbalances.Inflation, by contrast, appears contained. Consumer price growth eased to a five-month low of 2.0% in January, aligning with the BOK’s target and offering little immediate justification for policy tightening.Economists say the central bank has increasingly emphasised exchange rate stability and housing risks in recent meetings, reducing the likelihood of further easing this year. Some analysts suggest the possibility of rate hikes could re-emerge in 2027 if growth firms and asset prices continue to rise, though current market pricing for near-term tightening is seen as overly aggressive.For now, the BOK appears set on an extended hold as it balances modest economic recovery against currency and housing vulnerabilities.
This article was written by Eamonn Sheridan at investinglive.com.
💡 DMK Insight
The Bank of Korea’s decision to maintain rates at 2.50% signals a cautious approach amid rising FX and housing risks. With inflation steady at 2.0%, the BOK is clearly prioritizing stability over aggressive easing, which could impact the South Korean won’s performance in the forex market. Traders should keep an eye on the won’s reaction, especially if external pressures from global markets intensify. A sustained weakness in the won could lead to increased volatility in related assets, particularly South Korean equities and bonds. Furthermore, if the BOK’s stance remains unchanged through 2026, it could set a precedent for other central banks in the region, influencing broader market sentiment. Here’s the flip side: while the BOK is holding firm, any unexpected shifts in inflation or economic data could force a rethink. Traders should monitor upcoming economic indicators closely, especially those related to housing and consumer spending, as these could provide early signals of a potential policy shift. Watch for any significant movement in the won around key economic releases, as this could present trading opportunities.
📮 Takeaway
Keep an eye on the South Korean won’s performance; any significant weakness could signal trading opportunities, especially around upcoming economic data releases.
