South Korea central bank to assess incoming data to decide whether and when to lower rates

South Korea's central bank will decide whether and when to implement any further interest rate cuts next year based on a comprehensive assessment of incoming data, it said on Thursday.

The Bank of Korea said in its annual monetary policy plans for 2026 that market monitoring activity would be strengthened and stabilisation measures implemented actively, as there was high caution around the domestic foreign exchange market.

The BOK held rates steady for the fourth straight policy meeting last month and signalled it could be nearing the end of the current rate cut cycle, as currency weakness reduced scope for further easing. It next meets in January.

-Jihoon Lee/Reuters