The Bank of Korea (BOK) held its benchmark interest rate at 2.5 percent on Thursday, keeping policy unchanged for the third straight meeting amid persistent housing price pressures and currency volatility.

The decision comes as property prices in Seoul continue to climb despite multiple rounds of government intervention. The central bank appears to view a rate cut at this stage as a potential trigger for renewed speculation in the housing market. It also appears wary that the won?dollar exchange rate, which has traded around 1,430 won per dollar, could strengthen further if monetary policy were eased.

The BOK had pivoted toward easing in October, trimming the policy rate by 0.25 percentage point and surprising markets with back-to-back cuts in November, the first consecutive reductions since the global financial crisis.

Additional cuts in February and May aimed to cushion a sluggish economy hit by weak domestic demand, soft construction activity, and the impact of U.S. tariffs.

With housing prices accelerating, however, the BOK has now paused for three meetings in a row. Efforts to cool the market, including June’s decision to cap mortgage loans in the Seoul area at 600 million won ($420,000), have shown little effect.

Data from the Korea Real Estate Board showed that apartment prices in Seoul rose another 0.54 percent as of October 13 from two weeks earlier.

The government followed up last week by designating Seoul and key surrounding districts as land transaction permit zones and lowering mortgage caps for homes valued above 1.5 billion won to between two hundred and four hundred million won.

A rate cut so soon after those moves would likely have drawn criticism for undermining the government’s property tightening measures.

Governor Rhee Chang-yong underscored the cautious stance, telling lawmakers Monday that the central bank “does not intend to fuel the real estate market” by adding more liquidity.

Currency concerns added to the hesitation.

The won closed at 1,431 per dollar on October 14, the highest weekly close since late April, and has since traded mostly between 1,420 and 1,430. A rate cut now could further erode the won’s value, potentially locking in the higher range.

At the same time, a rebound in consumer sentiment supported by strong semiconductor exports, rising stock prices, and improved growth prospects for next year has reduced the urgency for additional monetary stimulus.

Analysts said the BOK is likely to maintain its hold in November unless housing and currency markets show clear signs of stabilization.

“The chance of a near-term rate cut will continue to diminish if current trends persist and market concerns intensify,” said Cho Young-moo, head of the NH Finance Research Institute.