Arabic version: بنك كوريا يثبت سعر الفائدة عند 3%

According to Cnbc, the Bank of Korea kept its policy rate unchanged at 3% on Thursday, following two straight hikes. Economists polled by Reuters had expected the decision, while analysts said the pause did not necessarily indicate a change in the central bank’s policy stance.

The decision came after President Lee Jae Myung reportedly called for an “all out effort” to boost housing supply. Inflation in Asia’s fourth-largest economy was 2.9% in September and has remained at or above the BOK’s 2% target for 13 months.

Market moves were mixed after the announcement. The Kospi was trading 1.23% lower, while the won strengthened marginally against the dollar to 1,326.1.

ING analysts said the rate pause was unlikely to mark the end of the tightening cycle because inflation remains above target and economic growth has been relatively resilient. South Korea’s growth has been largely supported by semiconductor exports as demand for chips used in the AI boom continues.

September exports rose a record 83.7% from a year earlier, with semiconductor exports increasing by more than 262% from the same period last year. The IMF projected 2026 growth of 3.3%, after GDP growth of 3.8% in the first quarter and 3.7% in the second quarter, both above expectations.