Japan's major banks report stronger corporate demand for funding
A Bank of Japan survey showed demand improving despite rate increases, as the central bank assesses how earlier tightening is affecting corporate financing.
Bank of Korea keeps rate at 3% after two consecutive hikes
Inflation eased to 2.9% in September but remained above target, while strong exports supported growth.
South Korea's central bank held its benchmark rate at 3% on October 22, interrupting a tightening cycle that included quarter-point increases in July and August. All 34 analysts surveyed had anticipated the decision.
The Bank of Korea's seven-member policy board kept the seven-day repurchase rate steady after delivering its first consecutive increases in more than three years. Governor Shin Hyun Song had subsequently signaled a preference for gradual tightening.
At an International Monetary Fund event on October 13, Shin reiterated that monetary policy would stay restrictive until inflation returned to target. September consumer inflation was 2.9%, down from August's 3.1% but still exceeding the central bank's 2% goal.
Exports have benefited from global investment in artificial intelligence, with January-to-September shipments exceeding $800 billion for the first time. Chip-related demand has helped support economic growth.
The survey's median forecast pointed to a November increase that would take the benchmark to 3.25%, matching the central bank's dot plot projection. Before the decision, NH Investment & Securities analyst Kang Seung-won said recent market volatility, particularly in stocks, would make a hawkish stance difficult.