Bank of Korea holds rates at 3%

The central bank said economic growth in 2026 and 2027 would be considerably stronger than its August forecasts of 3.3% and 2.9%, respectively. It also indicated that next year's headline and core inflation would exceed previous projections. Reuters published the decision at 01:07 UTC. 

The pause follows consecutive rate increases in July and August but does not signal the end of monetary tightening. Market expectations point to further increases in November and the first quarter of 2027, potentially bringing the benchmark rate to 3.50%. Strong semiconductor exports linked to artificial intelligence investment support growth, while elevated energy prices remain an inflation risk.