BOK holds key rate steady at 2.5% in July

As widely expected, South Korea's central bank has held its benchmark interest rate steady at two-point-five percent.

The Bank of Korea announced the decision on Thursday following the fifth Monetary Policy Committee meeting of the year, taking a break from a rate-cutting cycle after a cut of 25 basis points in May.

The decision comes amid Seoul's soaring housing prices and an increase in household loans.

Late last month, the government introduced stricter mortgage rules to try to cool down the overheated prices of homes in the capital region.

The record high interest rate gap between South Korea and the U.S., which currently stands at 2 percentage points, also fueled expectations of a rate freeze.