Bank of Korea expected to hold rates in October amid FX and housing concerns

Published 20/10/2025, 11:00
Bank of Korea expected to hold rates in October amid FX and housing concerns

Investing.com - The Bank of Korea (BoK) is expected to maintain its current interest rate at its October meeting, according to a recent analysis by Bank of America.

The decision to hold rates stems from ongoing concerns about weak foreign exchange amid trade uncertainties and a recent reacceleration in housing prices, Bank of America analysts noted in their report.

Policy coordination requirements, combined with continued macroprudential measures and recent policy guidance, suggest the central bank will not be comfortable with further monetary easing during the upcoming meeting.

Despite the anticipated hold in October, Bank of America maintains that a November rate cut remains likely, citing mounting pressures on economic growth as the primary driver for potential easing later this year.

The report indicates that most Monetary Policy Committee members are expected to maintain a dovish stance in their forward guidance, potentially signaling openness to a rate cut if progress occurs in trade talks and if housing policy measures show positive impacts.

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