Bank of Korea Holds Rate at 3.00%, Signals November Hike as Growth Forecasts Rise

The Bank of Korea kept its benchmark seven-day repurchase rate unchanged at 3.00% on Thursday, a decision forecast by all 34 analysts surveyed by Reuters, while retaining a hawkish stance that keeps further tightening on the table. The central bank said it "will decide the timing and pace of future increases," and upgraded its growth outlook, projecting rates for this year and next "considerably higher" than its August forecasts of 3.3% and 2.9%. It also expects headline and core inflation next year to exceed prior projections, and said the pause was needed to assess external risks and the lagging effects of back-to-back hikes in July and August. Headline consumer inflation slowed to 2.9% in September from 3.1% in August, still above the 2% target. Exports topped $800 billion from January to September for the first time, driven by global AI spending. Capital Economics expects one hike at the November meeting; median forecasts put the base rate at 3.25%. Governor Shin Hyun Song holds a news conference at 0210 GMT.