Bank of Korea expected to hold benchmark interest rate at 3 percent

Economic experts surveyed by Yonhap News Agency expect the Bank of Korea (BOK) to maintain its benchmark interest rate at 3 percent during its upcoming policy meeting this Thursday.

All six economists surveyed anticipate a pause following rate hikes in July and August. Analysts suggest the central bank needs time to evaluate the impact of previous increases on households and domestic companies.

Key economic indicators supporting a pause include core inflation, which dropped to 2.8 percent in September from 3.4 percent the previous month, and a relatively stable Korean won, which has been hovering around 1,330 won against the U.S. dollar. While growth momentum remains strong, experts note that current stabilization in inflation and exchange rates may provide insufficient justification for an immediate additional hike.