Overview
- The decision extends a pause on policy rate changes that has been in place since May.
- Officials warned of possible market volatility if the U.S. Federal Reserve continues to raise interest rates.
- South Korean media reported that stricter loan and property rules now cover all 25 Seoul districts and 12 additional areas in Gyeonggi Province.
- Negotiations over a proposed $350 billion U.S. investment arrangement remain unresolved, with negotiators reportedly due in Washington this week ahead of the Oct. 31 APEC summit in South Korea.
- In August, the central bank raised its 2025 inflation forecast to 2.0% and growth outlook to 0.9%, and it expects a modest pickup in domestic demand as exports face growing pressure from U.S. tariffs.