The Bank of Korea kept its seven-day repurchase rate at 3% on Thursday (Oct 22), in line with the forecasts of all 34 analysts surveyed by Reuters. It raised its growth outlook, now expecting growth considerably higher than August’s forecasts of 3.3% and 2.9% for this year and next, and said further tightening remains on the table, with the timing and pace of future increases still to be decided. Governor Shin Hyun-song said the bank does not need to strictly follow market expectations, and analyst consensus sees a peak rate of 3.50%, with hikes possibly in November and Q1 2027. Headline inflation slowed to 2.9% in September from 3.1% in August, still above the 2% target, while exports from January to September topped US$800 billion for the first time.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on businesstimes.com.sg ↗
Keywords
South Koreacentral bankinterest ratesAsia
Open a keyword to see other news on the same topic.
Related news
- Bank Of Korea Keeps Rate On Hold
- Global Market: Bank of Korea holds interest rates at 3% after back-to-back hikes
- BOK pauses rate hikes , but signals more may come
The Bank of Korea held its key rate at 3% on Thursday, pausing after two 25-basis-point hikes in July and August but leaving the door open to further tightening as growth and inflation run stronger than expected. Governor Shin Hyun-song said chip exports and investment should lift growth above the August forecasts of 3.3% this year and 2.9% next year, with exports reaching about $1 trillion and the current account surplus possibly exceeding $450 billion. September consumer inflation eased to 2.9% from 3.1% but remains well above the 2% target, and producer prices rose 7.7%, with oil prices and the prolonged Middle East conflict adding pressure. The won has recovered from its sharp depreciation earlier this year but remains weak by historical standards, and Shin stressed exchange rate stability, especially for lower-income households.
- Seoul holds key rate steady at 3 pc after 2 consecutive rate hikes
The Bank of Korea (BOK) kept its benchmark rate unchanged at 3%, after two consecutive hikes in July and August to curb inflation. The Monetary Policy Board said it needed to assess the effects of those hikes and risks at home and abroad, including Middle East tensions and monetary and fiscal policies in major economies. CPI inflation was 2.9% in September and is expected to stay at a similar level in October due to higher oil prices. Second-quarter GDP grew 0.6%, the BOK raised its 2026 growth forecast to 3.3%, and the current account surplus reached US$279.2 billion in the first eight months of the year. Governor Shin Hyun-song said tightening will continue until inflation is firmly on track toward the 2% target, and markets expect another hike at the next policy meeting.
- Roundup : S . Korea freezes key rate at 3 . 00 pct to evaluate impact of back - to - back rate hikes
The Bank of Korea held its seven-day repurchase rate at 3.00%, a unanimous decision in line with market expectations, with Governor Shin Hyun-song saying the tightening cycle still needs to be extended. Of 100 fixed-income experts surveyed by the Korea Financial Investment Association, 93% predicted a hold. CPI inflation eased to 2.9% in September from 3.1% in August, but has stayed above the 2% target for 13 straight months, while petroleum product prices jumped 14.8%. Household debt at deposit-taking banks totaled 1,198.9 trillion won (906.1 billion U.S. dollars), up 0.6 trillion won from a month earlier, a sharp slowdown from the 3.5 trillion won increase the previous month. Exports surged 83.5% in September from a year earlier, and GDP grew 1.8% in the first quarter and 0.6% in the second.
- Bank of Korea signals more tightening on strong growth after holding rate
Related markets
Latest news
- Apple's $1,999 iPhone Duo hits stores Friday amid limited supplies
Apple's first foldable smartphone, the iPhone Duo, goes on sale Friday at a starting price of $1,999, but supply is tight. Pre-orders sold out almost immediately and delivery times now stretch into late January, while Apple Stores have only limited units for walk-in customers. Scalpers are reselling the phone on sites like eBay for more than $4,000. The iPhone generated $209.58 billion of Apple's $416.16 billion revenue in 2025, well ahead of Services at $109.15 billion.
- Could California's billionaire tax hit Mark Zuckerberg?
Hosts Julie Hyman, Pras Subramanian and Jake Conley discuss California's proposed one-time 5% billionaire wealth tax and its possible impact on Meta CEO Mark Zuckerberg. They note the tax has not passed, but say the uncertainty appears to be weighing on Meta shares. Based on the company's filings, the panel describes how Zuckerberg raised the possibility of leaving California and how the board moved to address it, which they see as evidence the board is not disinterested. They also acknowledge the argument that Zuckerberg's central role in Meta's AI efforts makes his departure a stability risk, while pointing out that Sergey Brin has left California.
- Spotify Jumps 10% as Premium Subscriber Growth Tops Forecasts; Sirius XM Stays Put
Spotify shares rose about 10% to $579.49 after the company reported Q3 2026 Premium subscribers of 306 million, 1 million above its guidance, with 6 million net additions and growth in every region. Management guided to 316 million subscribers and €820 million in operating income for Q4, and credited audiobooks with lifting acquisition and retention. Revenue rose 16.3% to $5.58 billion, but GAAP diluted EPS of $2.79 missed the $2.85 consensus due to higher share-based compensation charges, and operating expenses grew 26%. Sirius XM was roughly flat at $26.85, down 0.4%, reflecting different business models: Spotify relies mainly on streaming subscriptions, while Sirius XM sells radio subscriptions largely through vehicles.
- American Airlines Sinks 4% as Fuel Costs Push Outlook to Full-Year Loss; Delta and United Airlines Drop 3%
American Airlines fell about 4% to $11.72 after reporting record Q3 2026 revenue of $16.34 billion and an adjusted loss of $0.28 per share, smaller than the $0.33 expected. Its outlook worsened, with a full-year adjusted loss now forecast at $1 to $1.60 per share, replacing July guidance that ranged from a $0.65 loss to a $0.65 profit. The Q4 plan assumes jet fuel at $4.70 a gallon, after Q3 jet fuel costs rose 67.5% to $4.63 billion as the average price climbed to $3.85 from $2.37. Premium revenue grew 22.9% and managed corporate sales 27.6%, but the airline carries $29.6 billion in debt and finance leases against a $4.2 billion stockholders' equity deficit. Delta and United Airlines, exposed to the same fuel market, fell about 3%.
- DeepSeek Completes Nearly $15 Billion Funding Round, Largest Ever in China
Chinese AI startup DeepSeek is finalizing a funding round of about 100 billion yuan (US$14.98 billion) from existing and new investors, including Tencent and CATL, according to Reuters citing sources. The round values the company at 500 billion yuan (about $74.9 billion) before the new capital, and its size is double the initial target of 50 billion yuan. Other participants include Midea, Meituan, Geely and GigaDevice, with more than 15 investors in total. The terms and investor list are not final and the deal is expected to close within days, while DeepSeek, CATL and Tencent have not commented. The move follows DeepSeek's hiring of CITIC Securities in September to prepare a potential IPO on China's STAR Market.
- Tesla and SpaceX Held On to All 30,221 Bitcoin in Q3. Is Elon Musk Still Bullish on BTC?
As of September 30, Tesla and SpaceX together held all 30,221 Bitcoin, worth about $2.53 billion, without buying or selling any coins in Q3 2026. Tesla holds 11,509 BTC ($962 million) and SpaceX holds 18,712 BTC (about $1.57 billion). Tesla reported net income of $787 million, down 42.7% from a year earlier, and a roughly $290 million Bitcoin mark-to-market gain on its books accounted for more than a third of that figure. Bitcoin later fell back to about $81,881, roughly 35% below its October 2025 all-time high of $126,080. The article says Tesla's unchanged holdings since 2022 point to inertia rather than renewed conviction, and neither company has announced plans to buy or sell.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.