SEOUL, 22nd October, 2026 (WAM) — The Bank of Korea (BOK) kept its benchmark interest rate unchanged Thursday after two consecutive rate hikes to curb mounting inflationary pressure.
The BOK’s Monetary Policy Board held the key rate steady at 3 percent in its rate-setting meeting, according to Yonhap News Agency.
The rate freeze came after the BOK raised the benchmark rate in its July and August meetings, citing “preemptive action” to curb mounting inflationary pressure and ensure macroeconomic stability. However, the BOK has signaled it will maintain a hawkish stance for the time being.
Consumer prices have hovered around the 3 percent level in recent months, rising 2.8 percent in July, 3.1 percent in August and 2.9 percent in September. Korea’s economy expanded 1.8 percent in the first quarter and 0.6 percent in the second quarter.
The country’s current account surplus reached US$279.2 billion in the first eight months of the year.
The BOK raised its 2026 growth forecast to 3.3 percent from 2.6 percent in August.
Source: Emirates News Agency