Bank of Korea holds rates steady at 0.75%

Exceeding target: Farmers pack grapes at a warehouse in Jangseong. South Korea’s annual consumer inflation reached 2.5% in September, staying above the BoK’s target for a sixth month. — Bloomberg

SEOUL: South Korea’s central bank kept interest rates steady yesterday, taking a breather after its first rate hike in nearly three years in August, but flagged further tightening could come as soon as November to curb rising inflation and household debt.

The Bank of Korea (BoK) held benchmark interest rates steady at 0.75%, as widely expected in a Reuters poll, but increased its inflation forecast to the “mid-2% level” from 2.1% in August. The central bank has an inflation target of 2%.