South Korea's central bank held its policy rate at 3% after two consecutive hikes, pausing tightening as inflation remains above target.
01Summary
- 01The Bank of Korea kept its policy rate at 3% on Thursday, as expected by economists polled by Reuters.
- 02President Lee Jae Myung called for an 'all out effort' to boost housing supply ahead of the decision.
- 03Inflation in South Korea was 2.9% in September, staying at or above the 2% target for 13 months.
- 04Exports jumped 83.7% year on year in September, with semiconductor exports rising over 262%.
- 05Analysts at ING said the pause does not signal the end of the tightening cycle, citing elevated inflation and resilient growth.
02Why it matters
The rate hold affects borrowing costs for households and businesses in South Korea, while continued high inflation may lead to further rate rises that could slow economic activity.
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