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.
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- 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.
- Bank of Korea holds rates , upbeat outlook points to future hikes
The Bank of Korea kept its seven-day repurchase rate unchanged at 3.00%, a decision all 34 analysts surveyed by Reuters had forecast. It raised its growth forecasts for this year and next to be considerably higher than its August estimates of 3.3% and 2.9%, and said further tightening remains on the table. Governor Shin Hyun Song declined to follow market expectations on the rate path, saying the bank will evaluate incoming data as it emerges. Analyst consensus puts the peak policy rate at 3.50%, with hikes in November and the first quarter of 2027, while headline inflation eased to 2.9% in September from 3.1% in August, still above the 2% target. Exports from January to September topped $800 billion for the first time ever.
- BOK keeps rate steady at 3 % after two consecutive hikes
The Bank of Korea (BOK) held its benchmark rate at 3% on Thursday, in a widely expected decision. The hold follows two consecutive 0.25-percentage-point hikes in July and August that lifted the rate from 2.5%. The bank called the back-to-back increases a preemptive response to mounting inflation pressure. Instead of a third hike, it chose to assess the effects of its moves while keeping a hawkish stance that leaves room for further increases. Governor Shin Hyun-song had highlighted strain on vulnerable borrowers, and the pause gives time to gauge the impact on inflation, the foreign exchange market and household debt.
- Analysts forecast BOK to hold benchmark rate unchanged at upcoming meet
A Yonhap survey of six economists found all expect the Bank of Korea to hold its benchmark rate at 3 percent at Thursday's meeting, after hikes in July and August. They cite the need to assess the effects of earlier increases, core inflation easing to 2.8 percent in September from 3.4 percent, and the won holding around 1,330 per U.S. dollar. All six nonetheless expect another hike in November, as inflation stays well above the 2 percent target amid robust semiconductor exports and high oil prices. Governor Shin Hyun-song signaled a possible pause but reaffirmed a hawkish stance, saying inflation would remain above target for a considerable period.
- Bank Of Korea Keeps Rate On Hold
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