Bank of Korea holds interest rate at 3%

The Bank of Korea (BOK) has decided to maintain its benchmark seven-day repurchase rate at 3%, pausing after consecutive interest rate hikes in July and August. The decision, which was unanimously supported by the seven-member monetary policy board, was widely anticipated by market analysts.

Governor Shin Hyun-song indicated that the central bank maintains a hawkish stance, noting that growth and inflationary pressures are stronger than previously anticipated. The BOK has upgraded its economic growth forecasts for this year and next, driven largely by a surge in semiconductor exports and AI-related chip demand.

While the rate remains unchanged for now, the central bank stated that further tightening remains an option. The board will continue to evaluate incoming data, including inflation trends, financial stability, and external risks such as geopolitical uncertainty in the Middle East and global monetary policies, to determine the timing and pace of future increases.