Shin Hyun Song, governor of the Bank of Korea, during a fireside chat at the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Tuesday, Oct. 13, 2026.

Sirachai Arunrugstichai | Bloomberg | Getty Images

South Korea's central bank expectedly kept its policy rate steady at 3% on Thursday, after two straight hikes, with analysts pointing that it does not signal a change in policy stance as inflation stays elevated.

Economists polled by Reuters had forecast the Bank of Korea to hold rates, and the decision comes after President Lee Jae Myung reportedly called for an "all out effort" to boost housing supply.

The BOK in its statement said it opted to hold rates as it assesses the effects of the two prior rate hikes, and looks at "developments in both domestic and external risk factors," citing increasing uncertainties around the Middle East conflict and monetary and fiscal policies of major economies.

Last week, BOK Governor Shin Hyun Song said at the IMF-World Bank…