Bank of Korea Hits Pause, but Chip Boom Keeps Rate Hikes in Play

The Bank of Korea held its benchmark interest rate at 3.00% on Thursday, pausing after 0.25-percentage-point increases in July and August lifted it from 2.5%. The seven-member board’s decision matched the forecast of all 34 analysts polled. Semiconductor exports rose 222.5% year on year in the first 20 days of October, while September consumer inflation was 2.9%, above the bank’s 2% target; 18 of 20 experts surveyed expect a November increase. The Korea Composite Stock Price Index (KOSPI) fell 20.72% over 10 sessions through Oct. 20, then rebounded 3.29% on Wednesday and opened 1.14% lower on Thursday before the decision.