The Bank of Korea has stated that, given inflation is expected to remain above its target level for "a considerable period of time" and with exports and domestic demand remaining robust, "it is necessary to continue with a policy stance aligned with further interest rate increases."

The central bank indicated that its committee will determine the timing and pace of any additional increases to the benchmark interest rate while assessing inflation pressures, the trajectory of domestic economic improvement, and financial stability.

The Bank of Korea noted that inflation is projected to continue exceeding the target level, as "high cost pressures will persist for some time, while demand-side pressures are also expected to gradually increase."

Supported by strong semiconductor exports, investment, and improving consumption, the economic growth rate for 2026 is forecast to significantly surpass the 2.6% projection made in May.

The central bank emphasized the need to remain vigilant regarding heightened volatility in the exchange rate, accelerating home price increases in Seoul and surrounding areas, and the growth of household debt.

The decision to raise rates this time was supported unanimously by all seven members of the monetary policy committee.