The Bank of Korea’s (BOK) decision Thursday to hold its benchmark interest rate at 2.5% for an eighth consecutive meeting revealed a central bank grappling with a more complicated problem than a typical inflationary cycle.

The BOK sharply raised both its inflation and growth forecasts, and while two Monetary Policy Board members dissented in favor of an immediate rate hike, most board members signaled support for higher rates over the next six months.

Despite the differing opinions, the board still chose to hold rates steady as it remains concerned with Middle East-driven energy inflation, exchange-rate volatility, elevated U.S. interest rates