EL7.AI
Central BanksMediumUpdated×2•Originally published 22 October 2026•Updated 22 October 2026•
1 min read

Bank of Korea Holds Interest Rates at 3% Citing Persistent Inflation

Key Facts

1The Bank of Korea kept its policy rate steady at 3% on Thursday.
2The decision follows calls from President Lee Jae Myung for an 'all out effort' to boost housing supply.
3The central bank cited elevated inflation as a key factor in its decision to hold rates.

The Bank of Korea kept its policy rate steady at 3% on Thursday, October 22, 2026. CNBC reported that the central bank cited elevated inflation as a key factor in its decision to hold rates, resisting immediate pressure for monetary easing.

The decision follows calls from President Lee Jae Myung for an "all out effort" to boost housing supply and stimulate the property market. The central bank is currently balancing persistent inflationary pressures against government initiatives, following data from October 15, 2026, which showed the national unemployment rate at 2.6%.

Looking ahead, South Korea is scheduled to release GDP growth rate data for both the quarter and the year on October 26, 2026, followed by the Business Confidence index on October 28, 2026.

Latest Updates · 2

  1. Notable·

    Update: The Bank of Korea kept the door open for a rate hike to 3.25% in November, noting that while inflation slowed to 2.9% in September 2026, it remains above the target level. This signal follows two previous consecutive rate increases as the bank maintains its focus on price stability.

  2. Notable·

    Update: The decision to maintain rates follows two consecutive interest rate hikes implemented by the central bank. This previous tightening cycle contributed to a strengthening of the Korean Won prior to the hold announced on October 22, 2026.