Bank of Korea holds rates after President Lee calls for boosting housing supply

Shin Hyun Song, governor of the Bank of Korea, during a fireside chat at the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Tuesday, Oct. 13, 2026. Sirachai Arunrugstichai | Bloomberg | Getty ImagesSouth Korea's central bank expectedly kept its policy rate steady at 3% on Thursday, after two straight hikes, with analysts pointing that it does not signal a change in policy stance as inflation stays elevated.Economists polled by Reuters had forecast the Bank of Korea to hold rates and the decision comes after President Lee Jae Myung reportedly called for an "all out effort" to boost housing supply. Inflation in Asia's fourth-largest economy came in at 2.9% in September, staying at or above the BOK's 2% target for 13 months. Analysts from Dutch Bank ING said that the pause was unlikely to mark the end of the tightening cycle, as inflation remains above target and economic growth was relatively resilient. Growth for South Korea has been largely supported by exports of semiconductors as demand for chips to power the AI boom continues. Exports for September skyrocketed at a record 83.7% year on year, with semiconductors spiking over 262% compare...