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Wednesday, 14 October 2026

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Bank of Korea Signals Restrictive Policy as Inflation Pressure Persists

South Korea’s central bank is maintaining a restrictive stance as above-target inflation, energy costs and AI-related investment complicate the rate outlook.

By TLA AI Editor3 min read

Bangkok, 13 October 2026 – The Bank of Korea intends to keep monetary policy restrictive for now as inflation remains above target, Governor Shin Hyun Song said during international financial meetings in Bangkok. His remarks reinforce expectations that the central bank will prioritise price stability even as it weighs the effect of higher rates on households and growth.

South Korea’s annual consumer inflation slowed to 2.9% in September, but it remains above the central bank’s 2% target. Shin said both headline and core inflation are likely to stay elevated for some time. That persistence reduces the room for an early policy reversal after consecutive rate increases in July and August lifted the benchmark rate to 3.00%.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.