Key facts
- Bank of Korea expected to hold benchmark rate at 3% on Thursday.
- Core inflation fell to 2.8% in September.
- Korean won hovering around 1,330 per U.S. dollar.
- All surveyed economists expect a rate hike in November.
Local economic experts anticipate the Bank of Korea will maintain its benchmark interest rate at 3 percent during its upcoming policy meeting on Thursday. A survey of six economists by Yonhap News Agency indicated unanimous agreement on holding the rate steady, citing the need to assess market conditions following consecutive rate hikes in July and August. Analysts believe further increases could strain households and businesses. Core inflation's drop to 2.8% in September and the Korean won's relative stability against the U.S. dollar around 1,330 also support a pause. However, all economists surveyed expect the BOK to raise rates again in November, anticipating continued strong growth and persistent inflationary pressures.