The Bank of Korea left its benchmark rate unchanged at 2.50 percent on 10 July, pausing after a quarter-point reduction in May. Policymakers said a further cut risked fuelling Seoul-area property prices and accelerating household borrowing, which has climbed sharply in recent months. The decision keeps the gap with the U.S. policy range at a record two percentage points. While the board maintained an easing bias, it indicated that the timing of any additional stimulus will depend on the effect of recently tightened mortgage rules, the government’s supplementary budget and the outcome of the late-July Federal Reserve meeting. On 30 July the Bank of Canada also held fire, keeping its overnight lending rate at 2.75 percent for a third straight meeting. Governor Tiff Macklem cited uncertainty stemming from U.S. trade tariffs and said the bank could lower borrowing costs again if a weakening economy pushes inflation below target. The central bank projects underlying inflation at roughly 2.5 percent, sees second-quarter GDP contracting 1.5 percent annualised and reports that exports and imports fell about 25 percent and 10 percent, respectively. Its Monetary Policy Report sets the neutral rate between 2.25 percent and 3.25 percent and outlines scenarios for both tariff escalation and relief.