The Bank of Korea (BOK) has maintained its key interest rate at 3.50%, in line with expectations. The decision comes after an election setback for the ruling party. BOK will continue to monitor household debt growth, inflation, and economic growth, while maintaining a restrictive policy stance. BOK Governor Rhee warns of increased uncertainty in the inflation outlook and potential challenges for rate cuts if inflation remains high. The central bank is closely watching the impact of diverging monetary policies abroad and the weakening of the Korean Won against the US Dollar.