Goldman Sees BOK Decision as 'Dovish Hold'

The Bank of Korea decided to keep the policy rate unchanged at 3%, contrary to most economists' expectations of a cut to 2.75%. This decision comes amid signs of a weakening economy and political turmoil. Market reactions were mixed, with some predicting a rate cut in February. Inflation is trending down, and exports are subdued, but the Bank of Korea seems confident in the economy's strength. Household debt remains a concern, but financial stability appears under control, allowing for potential future rate cuts.

How did the political crisis impact the Bank of Korea's decision-making process?

What are the implications of household debt trends on the Bank of Korea's monetary policy?