Seoul:The Bank of Korea (BOK) announced on Thursday that it will keep its benchmark interest rate unchanged at 3%. This decision follows two consecutive rate hikes aimed at addressing rising inflationary pressures.
According to Wam, the decision to maintain the current rate was made during the BOK's Monetary Policy Board meeting. The board had previously increased the benchmark rate during their July and August meetings as a "preemptive action" to manage inflation and ensure macroeconomic stability. Despite holding the rate steady, the BOK has indicated that it will continue to adopt a hawkish approach.
Recent data shows that consumer prices have been fluctuating around the 3% mark, with increases of 2.8% in July, 3.1% in August, and 2.9% in September. The South Korean economy has shown modest growth, expanding by 1.8% in the first quarter and 0.6% in the second quarter of the year.
In addition to the interest rate news, South Korea's current account surplus reached $279.2 billion in the first eight months of the year. The BOK has also revised its 2026 economic growth forecast upwards, from 2.6% to 3.3%, reflecting a more optimistic outlook.