SEOUL, October 22 (AJP) - The Bank of Korea (BOK) on Thursday kept its key rate steady at 3.00 percent to assess the effects of a half-percentage-point increase across its last two summer meetings.
The BOK raised the base rate to 2.75 percent in July and to 3.00 percent in August after holding it at 2.50 percent for more than a year.
All seven economists surveyed by AJP ahead of Thursday’s meeting had expected the central bank to stand pat. Markets had also priced in a pause in the tightening cycle, with government bond yields retreating to August levels on softer inflation and a stronger local currency.
Governor Shin Hyun-song’s remarks after the policy meeting will be closely watched for signals on when tightening might resume. He has previously indicated that further hikes may be needed to contain inflationary pressure and navigate a soft-landing on deleveraging,
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