South Korea's inflation rate has cooled more than expected, potentially supporting the central bank's shift towards a looser monetary policy in its upcoming meeting. The country's statistics department reported that consumer prices rose by 1.6% year-on-year in September, down from the 2% increase in August and below the forecasted 1.9% rise.
The Bank of Korea (BOK) is set to hold a policy meeting on October 11, where it will consider a potential rate cut. The central bank has kept the interest rate at a high level of 3.5% for over a year and a half. Robust economic growth has allowed the authorities to maintain a tight monetary stance so far this year.
