SKN | The Bank of Korea held interest rates at 3% after two consecutive hikes, while keeping further monetary tightening on the table.
Economic Reports & Macro Data The Bank of Korea (BOK) held its benchmark interest rate at 3.00% on Thursday, October 22, as expected, giving policymakers time to assess the effects of two consecutive rate increases earlier this year. The decision comes as South Korea’s export-driven economy benefits from strong demand for semiconductors and artificial intelligence infrastructure, while persistent inflation and financial stability concerns leave the central bank facing a difficult balance between controlling prices and sustaining growth. A Pause After Consecutive Rate Increases The central bank’s seven-member Monetary Policy Board voted to maintain the seven-day repurchase rate at 3.00%, following quarter-point increases in July and August. Those moves marked the first back-to-back rate hikes in more than three years and lifted borrowing costs from 2.50% […]
