Finance

Bank of Korea pauses rate hikes; focus turns to banks\' deposit and loan rates

The Bank of Korea kept its benchmark interest rate at 3.00 percent, but upward pressure on banks’ lending rates is expected to persist as the impact of earlier hikes feeds into funding costs and the possibility of further increases remains. Some brokerages forecast additional 0.25 percentage point hikes in November and February. COFIX, a key bank funding index, rose sharply in September, which could lift floating-rate mortgage costs and keep borrowers’ interest burdens elevated.

Finance

Bank of Korea holds base rate at 3.00 percent, checks external uncertainty before further hikes

The Bank of Korea held its benchmark interest rate at 3.00 percent, citing increased uncertainty surrounding the Middle East situation and major countries\' monetary policies. The central bank said it will decide whether to raise rates further after reviewing the effects of two earlier hikes. All seven members of the Monetary Policy Board backed the decision. The board said tightening is still needed, but it must check spillover effects as uncertainties expand.