The Bank of Korea vows to continue to adopt a policy stance consistent with further interest rate hikes.

The Bank of Korea stated that, considering that inflation is expected to remain above the target level for a "considerable period of time" and that exports and domestic demand remain strong, "it is necessary to continue to adopt a policy stance consistent with further rate hikes." The Bank of Korea said that the committee will decide on the timing and pace of further increases in the benchmark interest rate while assessing inflationary pressures, trends in domestic economic improvement, and financial stability. Due to "persistent cost pressures and increasing demand-side pressure," the inflation rate is expected to continue to exceed the target level. Supported by strong semiconductor exports, investment, and improving consumption, it is expected that the economic growth rate in 2026 will significantly surpass the 2.6% forecast in May. The Bank of Korea stated that it is necessary to continue monitoring issues such as increased exchange rate volatility, accelerating housing prices in Seoul and surrounding areas, and growing household debt. All 7 committee members unanimously supported this rate hike decision.