BOK pauses rate hikes, but signals more may come

What happened: The Bank of Korea held its key interest rate at 3 percent, pausing after two consecutive hikes, but Gov. Shin Hyun-song said the unanimous hold did not signal an end to the tightening cycle. Key numbers: Rate held at 3 percent after 25 basis point hikes in July and August. Why it matters: Shin said growth and inflation have been stronger than expected, so a restrictive stance is needed until inflation converges toward the target. He said inflation may take until around 2028 to return to 2 percent.

The Bank of Korea held its key interest rate at 3 percent, pausing after two consecutive hikes, but Gov. Shin Hyun-song said the unanimous hold did not signal an end to the tightening cycle.

Shin said growth and inflation have been stronger than expected, so a restrictive stance is needed until inflation converges toward the target. He said inflation may take until around 2028 to return to 2 percent.