South Korea holds growth projection while flagging inflation risk

Policymakers keep key lending rate unchanged for ninth consecutive session

20240222 Bank of Korea in Seoul, South Korea

The Bank of Korea has highlighted stubborn inflation and high household debt as challenges for the economy. © AP

STEVEN BOROWIEC, Nikkei staff writer

SEOUL -- The Bank of Korea on Thursday maintained its growth projection at 2.1% for this year, pointing to stubbornly high inflation and household debt as ongoing challenges for Asia's fourth-largest economy.

The central bank also announced that it will keep its key rate steady at 3.5%, marking the ninth consecutive session where it has held the rate. The bank maintained its inflation projection at 2.6%.

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