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flag Bank of Korea maintains interest rate at 2.50%, revises growth forecast to 0.9% for 2025.

flag South Korea's central bank, the Bank of Korea, has kept its benchmark interest rate at 2.50%, citing concerns about housing prices and household debt. flag The bank revised its 2025 growth forecast to 0.9%, up from 0.8%, due to a supplementary budget plan that includes cash handouts to boost consumer demand. flag The forecast is higher than the IMF's estimate but lower than the OECD's outlook. flag Despite the modest growth revision, most analysts predict further rate cuts to support economic recovery amid uncertainties like US tariffs and trade negotiations.

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