According to Yonhap News Agency, the decision was made on the second day of the Federal Open Market Committee’s regular meeting.
The Fed cut rates three times in a row last year — in September, October and December — but has kept them on hold three straight times this year, following decisions in January and March.
With the latest move, the interest-rate gap between South Korea (2.50%) and the United States remained 1.25 percentage points at the upper end.
Explaining the decision, the Fed said, “Inflation remains elevated, which partly reflects recent increases in global energy prices,” and added that shifts in the Middle East situation are creating “high uncertainty” for the economic outlook.
It said recent indicators suggest economic activity is expanding at a solid pace. “Job gains have moderated on average,” it said, adding that the unemployment rate has been little changed in recent months.
The Fed said the committee aims over the longer run to achieve maximum employment and 2% inflation, and that it will closely assess economic data, changes in the outlook and risk factors in future rate decisions.
It also said it is prepared to adjust the stance of monetary policy as appropriate if risks emerge that could hinder its goals — a remark some interpreted as signaling the possibility of future rate cuts.
* This article has been translated by AI.
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