The Bank of Korea decided to maintain its key rate at 3.5 percent for the 13th consecutive session, as household debt continues to rise and inflation remains sluggish. The central bank has refrained from adjusting the rate since February last year, following seven consecutive rate hikes from April 2022 to January 2023. The decision to freeze the rate was widely anticipated, with the bank citing downward inflation trends and modest domestic demand recovery. It also highlighted the need to monitor the impact of recent housing market measures on home prices in Seoul and surrounding areas, as well as on household debt. The rate freeze comes amidst concerns over high household debt, lending rate hikes, and easing inflationary pressure in South Korea's economy. The central bank is cautious about the impact of government measures on the housing market and the continued rise in housing prices in Seoul, as well as the persistent increase in household debt. In addition, the bank trimmed its growth projection for the year to 2.4 percent and adjusted its inflation outlook to 2.5 percent, reflecting the challenges facing the economy. The decision to maintain the rate follows the Federal Reserve's recent decision to keep its benchmark lending rate steady, with the possibility of a rate cut being considered in the near future.