The Bank of Korea kept its benchmark interest rate unchanged at 2.50% on Thursday, as expected by 30 of 32 economists polled.
The central bank revised up its 2025 inflation forecast to 2.7% from 2.2%, citing rising oil prices due to the Iran war. It also raised its growth forecast to 2.6% from 2.0% on strong Q1 expansion.
New Governor Shin Hyun Song will hold his first news conference to signal whether rate hikes are imminent.
Analysts expect a hike to 2.75% in July, with another in October, pushing the rate toward 3.00% by year-end.
Headline inflation hit 2.6% in April, breaching the 2% target, while a weakening won adds import price pressure.
