Bank of Korea holds base rate at 3.00 percent

The Bank of Korea's Monetary Policy Board kept the base rate at 3.00 percent on Thursday, pausing after back-to-back hikes in July and August while keeping its tightening stance, as markets expected.

Why it matters: The pause was priced in, with 93 percent of bond market participants expecting a hold, so the live question is now the year's final meeting on November 26, where firm growth, September inflation of 2.9 percent and still rising Seoul area home prices leave a further hike in play.

Data as of Yonhap News Agency comprehensive report of October 22, 2026, in Korean, opened and read in full in translation. The Bank of Korea's own English language decision statement had not been posted when checked before writing, and Governor Shin Hyun-song's press conference was scheduled for 11:10 AM Korea time, so the decision is reported here from Yonhap, South Korea's national wire, as a single source, hence grade C. Developing item.

The Bank of Korea’s Monetary Policy Board held the base rate at 3.00 percent on Thursday, in line with market expectations, Yonhap reported. The board maintained its tightening stance but paused to assess the effect of consecutive 25 basis point hikes in July and August, which had lifted the rate from 2.50 percent, while consumer inflation held at 2.9 percent in September, above the bank’s 2 percent target, and growth outperformed on semiconductor exports.

Attention now turns to the year’s final meeting on November 26, with markets expecting a possible further hike and a possible upward revision to the bank’s 3.3 percent growth forecast for 2026. The next inputs are the third quarter GDP advance estimate on October 27 and October inflation on November 2, and a sharply stronger won, which touched its firmest intraday level since October 2024 on Wednesday, was among the factors Yonhap cited as reducing the urgency of a move this month.

Bank of Korea holds base rate at 3.00 percent

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