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Poll shows 8 out of 10 experts expect BOK to freeze key rate

Published: 21 Oct. 2025, 16:19

Bank of Korea Gov. Rhee Chang-yong is seen attending a parliamentary audit in this photo taken on Oct. 20. [NEWS1]

A majority of Korean bond experts expect the Bank of Korea (BOK) to hold its policy rate steady for a third consecutive time at its rate-setting meeting this week, a survey showed Tuesday.

According to the poll conducted by the Korea Financial Investment Association (Kofia) of 100 fund managers and bond traders, 85 percent said they expected the central bank to keep the country's base rate unchanged at 2.5 percent.

The central bank's monetary policy board is scheduled to hold its rate-setting meeting Thursday.

Kofia noted that the continued rise in housing prices, particularly in the country's capital of Seoul and its surrounding areas, could pressure the BOK to maintain the country's key interest rate.

Meanwhile, the bond market sentiment index (BMSI) for November stood at 111.5, up 12.4 points compared to the BMSI for October, which stood at 99.1.

A reading above 100 means that market participants expect bond prices to rise. Bond prices move inversely to yields.

Investors' preference for safer assets grew, amid growing uncertainty stemming from U.S.-China trade tensions and concerns over an economic slowdown, Kofia explained.

Regarding bond yields, 55 percent of those surveyed projected bond yields to fall, while only 4 percent expected bond yields to increase next month.

For inflation, 22 percent of respondents expected prices to rise, down 12 percentage points from a month earlier. The proportion of those that expected prices to drop gained 3 percentage points to 7 percent over the cited period.

When asked about the foreign exchange rate, only 3 percent of respondents said the Korean won would likely rise against the U.S. dollar.

The local currency has remained weak recently, dipping to as low as 1,431 won per dollar on Oct. 14, the lowest level in more than five months.

Yonhap