After the BOK Hold: KOSPI and KOSDAQ Fall More Than 3% as Governor Sees Inflation Reaching Target Only in 2027
SEOUL — South Korean markets split after the Bank of Korea kept its base rate at 3.00 percent on Thursday, October 22. According to Yonhap News Agency, Governor Shin Hyun-song said after the decision that the central bank would maintain a tightening bias until annualised inflation comes down to its target range of around 2 percent, and that he projected the goal would be reached in 2027 — indicating the base rate could stay above 3 percent through next year.
Government bonds rallied: the two-year yield fell 1.2 basis points to 3.771 percent and the 10-year yield fell 1.2 basis points to 4.148 percent. Stocks fell sharply, with both the KOSPI and the KOSDAQ dropping more than 3 percent. The won was quoted at 1,323.9 per dollar at the time of Yonhap's report.
The decision earlier in the day left the base rate unchanged at 3.00 percent. The central bank had raised rates by 25 basis points in each of July and August, moves Governor Shin has repeatedly described as preemptive steps taken before inflation pressures became entrenched, with further moves dependent on incoming data.
Published by GSM · USA (original Chinese edition)
Photo: Wikimedia Commons · bada.kbs.co.kr · KOGL Type 1
- 2026-10-21Bank of Korea Holds Benchmark Rate at 3.00%, Pausing After Back-to-Back Hikes; Governor Says Tight Stance Will Stay Until Inflation Converges to Target
- 2026-10-22After the BOK Hold: KOSPI and KOSDAQ Fall More Than 3% as Governor Sees Inflation Reaching Target Only in 2027This story
