The Bank of Korea's Monetary Policy Board voted unanimously on April 10 to leave the Base Rate at 2.50 percent until its next meeting.
The Board described an unusually difficult mix of conditions. Energy-market disruption was adding upside pressure to inflation, while the same shock threatened growth and increased volatility in financial and foreign-exchange markets.
Long-term government bond yields had risen as investors reassessed monetary-policy expectations in major economies. The U.S. dollar strengthened, and equity prices in several large markets fell sharply.
The Bank's opening remarks emphasized uncertainty over developments in the Middle East and the time that damaged energy supply chains might require to normalize, even if immediate conflict risks eased.
Holding the rate did not mean the Board viewed conditions as stable. It reflected a decision to keep policy unchanged while assessing how inflation, growth, energy prices and the exchange rate would interact over the following months.
