Seoul:The Bank of Korea (BOK) decided to maintain its benchmark interest rate at 3 percent on Thursday, following two consecutive rate hikes. This decision comes amid ongoing Middle East tensions and strong export performance.
According to Yonhap News Agency, the BOK's Monetary Policy Board's decision to hold the rate steady was widely anticipated. The rate freeze follows increases in July and August, which were undertaken as "preemptive action" to address rising inflationary pressures and maintain macroeconomic stability.
These previous hikes were the first consecutive increases since January 2023, marking a significant monetary policy shift that began in April 2022, when the central bank raised rates in seven successive meetings.