BOK holds key rate steady after 2 consecutive hikes

The Bank of Korea (BOK) kept its benchmark interest rate unchanged Thursday following two consecutive rate hikes to tame accelerating inflation amid protracting Middle East tensions and robust exports.

In a widely anticipated decision, the BOK's Monetary Policy Board held the key rate steady at 3 percent in its rate-setting meeting.

The rate freeze came after the BOK raised the benchmark rate in its July and August meetings, citing "preemptive action" to curb mounting inflationary pressure and ensure macroeconomic stability.

The earlier decisions marked the first back-to-back rate hikes since January 2023, when the central bank raised the rate at seven consecutive meetings starting in April 2022.

Yonhap