Analysts forecast BOK to hold benchmark rate unchanged at upcoming meeting: poll

A survey conducted by Yonhap News Agency suggests that local economic experts anticipate the Bank of Korea (BOK) will maintain its benchmark interest rate at 3 percent during its upcoming policy meeting on Thursday, possibly pausing further hikes for now. Joo Won, a senior researcher at Hyundai Research Institute, argues that three consecutive rate increases could strain households and companies.

Economists are expected to closely monitor core inflation, which decreased to 2.8 percent in September from 3.4 percent the prior month, as well as the Korean won's strength against the US dollar. Despite strong growth momentum, there is limited reason for an additional rate hike, according to Ahn Jae-kyun, an analyst at Korea Investment & Securities Co. The central bank is likely to raise rates again in November, as consumer price inflation remains above its 2 percent target, while semiconductor exports and inflationary pressures from high oil prices continue to support growth.