The Bank of Korea ( BOK ) has slightly mitigated its burdens with Australia becoming the first nation to raise the benchmark rate among G 20 members . Even if the BOK increases the benchmark rate in the near future , Australia has already shouldered a risky title of ‘ the first G 20 nation to raise the benchmark rate ’. Nonetheless , the BOK is almost unlikely to increase the benchmark rate within the month . Against this backdrop , during a press briefing held after the monetary policy meeting last month , the BOK Governor Lee Sung - tae stated that a benchmark rate hike could be discussed only after statistics on the third quarter gross domestic product are released . Thus , the earlier timing for a benchmark rate hike seems to be after November . Although the policy rate ascends sooner or later , monetary policy easing is appeared to be maintained for a while . The reason behind this is that the real interest rate is unlikely to ride on an uptrend even if the benchmark rate rises from the current lowest ( 2 percent ) within this year . Taking into consideration that the BOK ’ s inflation targeting range stands between 2 . 5 percent and 3 . 5 percent , the central bank will be able to keep monetary policy easing even with a policy rate hike from the current 2 percent to 3 . 5 percent . Therefore , authorities have a long path ahead before the benchmark rate exceeds 3 . 5 percent and monetary policy shifts to retrenchment . However , there are still burdening factors for a benchmark rate hike -- the biggest factor is that housing price trends , earlier presented as a ground for the rate hike by the BOK , have entered into a relative stabilization phase . The South Korean government is also revealing negative responses towards a rate hike . [ written by Ye - kyeong Han , translated by Eun - jung Kim , edited by JYJ ] [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]