Bank of Korea holds key rate at 3% after two hikes, signals continued tightening
Briefing by News4U · First published
The BOK kept its benchmark rate unchanged at 3 percent on Oct. 22, citing Middle East uncertainty and the need to assess prior hikes, while signaling further tightening amid high inflation and strong growth.
The Bank of Korea held its key rate steady at 3 percent after consecutive hikes in July and August, with all seven board members supporting the decision. The central bank cited uncertainties from the Middle East conflict and major-economy policies, while noting strong exports, investment and inflation near 3 percent. [1] [2] [3] [4]
Governor Shin Hyun-song said the back-to-back hikes provide room to maneuver but further tightening is necessary. The BOK raised its 2026 growth forecast to 3.3 percent and expects inflation to remain above target for some time, with the next policy meeting set for Nov. 26. [2] [3] [4]
Sources
- Full text of BOK statement on monetary policy decision in Oct.
Yonhap Business · · Excerpt
- (2nd LD) BOK holds key rate steady at 3 pct after 2 consecutive rate hikes
Yonhap Business · · Full text
- BOK holds rate at 3%, leaves door open to November hike
Pulse by Maeil Business · · Full text
- (3rd LD) BOK holds rate at 3 pct after 2 straight hikes, signals continued tightening
Yonhap Business · · Excerpt