Seoul, October 22 (QNA) - The Bank of Korea (BOK) kept its benchmark interest rate unchanged Thursday following two consecutive rate hikes to tame accelerating inflation amid protracting Middle East tensions and robust exports.

In a widely anticipated decision, the BOK's Monetary Policy Board held the key rate steady at 3% in its rate-setting meeting.

Consumer prices have hovered around the 3% level in recent months, rising 2.8% in July, 3.1% in August and 2.9% in September.

BOK Gov. has said the central bank will continue tightening monetary policy until inflation is firmly on track to reach its 2% target.

The BOK raised its 2026 growth forecast to 3.3% from 2.6% in August, suggesting the economy could expand by as much as 3.6%, supported by robust semiconductor exports amid strong demand for artificial intelligence (AI) infrastructure.

Market experts expect the BOK to deliver another rate hike at its next policy meeting, scheduled for Nov. 26. (QNA)