Seoul: The Republic of Korea's central bank kept its benchmark interest rate unchanged Thursday to maintain financial stability amid a red-hot housing market and a weakening currency. In a widely expected decision, the Monetary Policy Board of the Bank of Korea (BOK) held its key rate steady at 2.5 percent during its rate-setting meeting in Seoul.

According to Emirates News Agency, the central bank began its monetary easing cycle in October last year, cutting the key interest rate by a total of 100 basis points since then, with the most recent reduction implemented in May. The decision marked the third consecutive on-hold decision, though the BOK has stressed the need to support the economic recovery through monetary easing.

At its September meeting, the Federal Reserve cut its benchmark rate by a quarter percentage point to a range of 4-4.25 percent and signalled two more cuts this year.