Bank of Korea holds rates at 3% but raises growth outlook. What comes next? - Firstpost

South Korea’s central bank pauses after two consecutive rate hikes as AI-led exports boost growth, while inflation above target keeps a November increase in focus The Bank of Korea kept its benchmark interest rate unchanged at 3 per cent on Thursday, pausing after two consecutive hikes, even as stronger economic growth, booming exports and persistent inflation kept the door open to further monetary tightening. The central bank’s seven-member Monetary Policy Board voted to maintain the seven-day repurchase rate at 3 per cent, in line with expectations. All 34 economists surveyed by Reuters had forecast no change. The pause comes after the Bank of Korea raised rates in July and August, marking its first back-to-back increases in more than three years.