Check Why the Bank of Korea Held Its Base Rate at 3.00%

What did the board decide this time?

According to the bank's statement, the board decided to keep the base rate at 3.00%. Kyeongin Ilbo reported that it was the first hold after back-to-back hikes in July and August.

The bank explained it this way. The domestic economy is growing strongly, led by exports and investment, inflation is high at around 3%, and financial stability risks remain. With uncertainty also growing over the Middle East conflict and the monetary and fiscal policies of major economies, it judged that it should leave the rate where it is and assess external and domestic risks and the effects of the two earlier hikes.

How did the bank describe the economy and inflation?

The table below covers what the bank said in its October 22 policy statement and the Governor's opening remarks. All figures were checked on 2026-10-23.

New forecast numbers for next year's growth and inflation were not released this time. According to News1, the formal revised forecasts will come out on the day of the November board meeting.

What did Governor Shin Hyun-song say at the press conference?

According to News1, Governor Shin described the hold as the fruit of the preemptive July and August hikes, which he called "hoe work." He said the hikes gave the bank room to run policy around domestic conditions rather than being chased by market moves. He said Korean financial markets stayed stable despite the Federal Reserve's September rate hike, and that the pace of increase in home prices and the financial vulnerability index had eased.

He said that did not mean tightening was over. Because growth and price pressures are stronger in some respects than in August, he said the tightening stance needs to continue, and that the bank will respond until it is confident inflation is converging stably to target. He rejected reading the unanimous hold as a softer stance, and said the bank need not be bound to signaling its future direction through dissenting votes.

He did not confirm a November hike. The timing and pace of further increases will depend on incoming data, and he said it would not be too late to check indicators such as third-quarter GDP and October consumer prices. He gave no final rate level or tightening duration. He said the rate path implied by the bond market is a reference but need not be followed. He expects inflation to stay above the 2% target next year and come close to target the year after.

He covered the exchange rate in the Q&A. The Governor said the won-dollar rate was about 1,380 at the August press conference and about 1,325 before the October 22 announcement. He said the won is still weaker than in past years on both nominal and real effective terms, though it does not have to return to the past average, and he noted that a stronger won restrains import prices and raises the purchasing power of lower-income households.

What dates should you watch next?

There are three things to check, drawn from the Governor's remarks and the reports.

• Third-quarter gross domestic product (GDP): an indicator the Governor said the bank will check further.
• October consumer prices: mentioned together with GDP.
• The November board meeting: the formal revised economic outlook comes out on the day of that meeting.

The materials checked did not give dates for these three. Check the Bank of Korea website for the policy meeting schedule and the statistics release calendar. This article reflects the Bank of Korea announcement and reports opened on 2026-10-23, and the original statement is available in the bank's press release registered on October 22, 2026.