The Bank of Korea indicated on Thursday that, given persistently elevated inflation and expectations of sustained solid economic growth for the time being, it will evaluate both domestic and international conditions when determining the timing and pace of future interest rate increases.

The central bank's monetary policy report stated that strong economic expansion and above-target inflation are anticipated to continue for a considerable period, necessitating a close watch on changes in both domestic and external environments while setting the timing and tempo of further tightening.

The Bank of Korea raised its benchmark rate to 3% at consecutive meetings in July and August, marking the first back-to-back hikes since January 2023. This follows an earlier tightening cycle that began in April 2022 and featured seven successive rate increases.

At a press conference following last month's policy decision, the central bank emphasized that export-driven economic growth and investment-boosted household incomes are likely to keep consumer prices above the 2% inflation target. Therefore, adopting a forward-looking approach is deemed necessary to prevent inflationary pressures from intensifying further.