Bank of Korea Holds Policy Rate at 3.00%
The Bank of Korea held its policy rate at 3.00% on October 22, 2026, leaving it unchanged from the previous level. The decision pauses a recent rise in the rate after increases in July and August.
How the rate reached 3.00%
The Bank of Korea’s rate record shows four changes from November 2024 through September 2026. Two cuts in February and May 2025 brought the rate to 2.50%. Increases of 25 basis points each in July and August 2026 then raised it to 3.00%.
Borrowing rates remain higher
The average rate on newly issued home mortgage loans was 4.66% in August 2026, according to Bank of Korea data. That was 1.66 percentage points above the policy rate, illustrating why a decision to hold the benchmark steady does not mean new borrowers face a 3.00% mortgage rate.
By the Numbers
| Metric | What it measures | Value | Period |
|---|---|---|---|
| Base rate (Bank of Korea) | Change from the previous period | 0 bp | 2026-10-22 |
| Base rate (Bank of Korea) | Rate changes within the review window | 4 | 2026-10-22 |
This article is for informational purposes only and is not investment advice. Figures reflect the period stated and may differ from current values. You are responsible for your own investment decisions.