Business · Economy · 3 hrs ago
South Korea’s central bank to decide whether to raise rates for a third time
The Bank of Korea will decide on its base rate on October 22 at a policy meeting in South Korea.
The rate is currently 3.00%, after two quarter-point increases in July and August.
Markets mostly expect the bank to pause and assess the effects of those increases, rather than raise rates for a third meeting in a row.
But high inflation and housing-market concerns could keep further increases on the table.
The bank will also publish September producer-price figures, which show how prices are changing for goods sold by producers.
The decision matters for borrowing costs and the broader economy, while lawmakers are also due to question financial regulators about issues including single-stock leveraged funds and AI-related hacking incidents.
The rate decision and producer-price data are due next week, alongside government hearings on economic and financial policy.
The Bank of Korea will decide on October 22 whether to change its 3.00% benchmark interest rate.
The decision comes after the bank raised rates by 0.25 percentage points in both July and August.
Market opinion favors holding the rate while assessing the effects of those consecutive increases.
High inflation and continued instability in the property market leave open the possibility of another increase.
The bank is also due to publish September producer price data on October 21.
- Who
- The Bank of Korea’s Monetary Policy Board.
- What
- It will decide whether to adjust the benchmark interest rate, currently 3.00%.
- When
- October 22, during the week of October 19–23, 2026.
- Where
- Not stated.
- Why
- The board is reviewing monetary policy after two consecutive rate increases. Inflation remains high and the property market is unsettled.
This story does not have two clearly opposing sides.
The Monetary Policy Board raised the benchmark rate by 0.25 percentage points.
The board raised the benchmark rate by another 0.25 percentage points.
The Bank of Korea is due to publish September producer price data.
The board is due to decide whether to adjust the benchmark rate.
- Current benchmark rate
- 3.00%
- Previous increases
- 0.25 percentage points in July and 0.25 percentage points in August
- Rate decision
- October 22, 2026
- Producer price data
- September figures due October 21, 2026