The Bank of Korea left its benchmark interest rate unchanged on Thursday, pausing after back-to-back quarter-point hikes in July and August, although strong chip-driven growth and above-target inflation keep the option of further tightening open, Reuters reported. The seven-member monetary policy board voted to keep the seven-day repurchase rate at 3.00%, a decision forecast by all 34 analysts surveyed by Reuters.

The central bank maintained a hawkish stance, upgrading its economic growth forecasts and remaining upbeat about export momentum, Reuters reported in its updated coverage. “The growth rates for this year and next year are expected to be considerably higher than the August forecasts of 3.3% and 2.9%, respectively,” the BOK said in a statement, adding that a pause on Thursday was needed to evaluate external risks and the lagging effects of its July and August hikes. It also said both headline and core inflation for next year will exceed its previous forecasts.

Headline consumer inflation slowed to 2.9% in September from 3.1% in August, remaining above the bank's 2% target, Reuters reported. Exports are powering ahead thanks to global spending on artificial intelligence: shipments from January to September topped $800 billion for the first time ever — yaani, about $0.8 trillion (800 arab dollars). The BOK said further tightening remains on the table, stating it “will decide the timing and pace of future increases” while assessing inflation, financial stability and domestic trends.

“The Bank of Korea left its policy rate unchanged at 3.00% at today's meeting, but we doubt this marks the end of the tightening cycle, and have pencilled in one hike for the BOK's final meeting of the year in November,” Gareth Leather, an analyst at Capital Economics, said in a note after the decision, quoted by Reuters. Median forecasts in the Reuters survey also showed the BOK raising its base rate to 3.25% at its November meeting, in line with the bank's own projection.