Bank of Korea holds benchmark rate at 3.00% amid surging chip exports

The Bank of Korea (BOK) held its benchmark rate at 3.00% on Thursday after two straight hikes, matching the forecast of all 34 analysts in a Reuters poll. This pause comes despite a 222.5% surge in early October chip exports compared to a year earlier, which keeps a November rate increase in play due to persistent price pressure. Consumer prices rose 2.9% in September, exceeding the BOK's 2% target, while core inflation eased to 2.8% from 3.4%. Eighteen of 20 experts surveyed by a Seoul Economic Daily expect a November hike, and Citibank and Morgan Stanley expect rates to reach 3.5% in early 2027. However, the Korea Composite Stock Price Index (KOSPI) fell 20.72% in 10 sessions through Oct. 20, partly due to doubts over returns on AI spending, despite the export boom.