The Bank of Korea kept its base rate unchanged at 3.00% at a monetary policy board meeting on Oct. 22. After raising rates in two consecutive moves in July and August, the central bank paused to assess the impact of its tightening. Still, with the economy performing strongly on the back of semiconductors and inflationary pressure persisting, analysts said the chance of another increase in November remains high.
In a survey of 20 economics and business professors and financial experts conducted by Seoul Economic Daily on Oct. 18, 19 respondents, or 95%, had predicted the central bank would hold rates in October. The forecasts reflected a view that policymakers needed time to gauge the effects of the back-to-back hikes in July and August. However, 18 respondents, or 90%, expected another increase in November, pointing to a continued run of rate hikes.