Bank of Korea Holds Policy Rate at 3% as Inflation Stays Above Target
· Business · CNBC, Bloomberg
The Bank of Korea kept its policy interest rate steady at 3% on Thursday following two consecutive hikes. The decision aligns with forecasts from economists polled by Reuters and follows President Lee Jae Myung's call for an all-out effort to boost housing supply. Price growth in South Korea reached 2.9% in September, remaining at or above the central bank's 2% target for 13 months. Analysts from Dutch Bank ING note that the pause does not signal a policy shift because inflation remains elevated and economic growth stays resilient. Economic expansion has been driven largely by semiconductor exports for the AI boom, which surged 83.7% year on year in September.
Why it matters
Global investors and Asian markets monitor South Korea's monetary stance as persistent inflation complicates central bank decisions despite robust tech-driven export growth.
Read the original report — CNBC
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