Survey: Bank of Korea Expected to Keep Interest Rates Unchanged This Week, November Rate Hike Expectations Rise

1. A survey released on Sunday showed that economists expect the Bank of Korea to keep its benchmark interest rate unchanged at this week's policy meeting, but may raise rates at the next meeting. All six economists surveyed expect the Bank of Korea's Monetary Policy Committee to keep the key interest rate at 3% on Thursday.2. Experts believe that after two consecutive rate hikes in July and August, the central bank needs time to assess market conditions. Ahn Jae-kyun, an analyst at Korea Investment & Securities, stated that although economic growth momentum is strong and this year's growth forecasts still have room for further upward revision, core inflation has stabilized and the exchange rate is steady in the 1,330 won range, so there is currently no sufficient reason for another rate hike.3. The survey also showed that all six economists expect the Bank of Korea to raise rates again in November. Strong semiconductor exports are supporting economic growth, while consumer price inflation is expected to remain well above the 2% target level.