Citigroup economist Jin-Wook Kim wrote in a report that the Bank of Korea may abandon possible interest rate cut options as early as April. Kim anticipates that the central bank will keep the benchmark interest rate unchanged at 2.50% at the January 15 policy meeting. Its monetary policy is shifting to the position of keeping interest rates unchanged for a long time, but the government still reserves the option of cutting interest rates. He said that Bank of Korea Governor Rhee may express concerns about financial instability at the upcoming meeting, particularly the weakness of the won against the US dollar, while ruling out the possibility of interest rate hikes in the first half of the year. He added that the Bank of Korea is unlikely to raise interest rates in 2026.

Citigroup economist Jin-Wook Kim wrote in a report that the Bank of Korea may abandon possible interest rate cut options as early as April. Kim anticipates that the central bank will keep the benchmark interest rate unchanged at 2.50% at the January 15 policy meeting. Its monetary policy is shifting to the position of keeping interest rates unchanged for a long time, but the government still reserves the option of cutting interest rates. He said that Bank of Korea Governor Rhee may express concerns about financial instability at the upcoming meeting, particularly the weakness of the won against the US dollar, while ruling out the possibility of interest rate hikes in the first half of the year. He added that the Bank of Korea is unlikely to raise interest rates in 2026.