South Korea's central bank has reaffirmed that it will continue to maintain price stability and the market is expecting another rate hike next week. Both the central bank and the government have repeatedly warned against the possibility of inflation expectations rising.
Government data shows that inflation in August held steady at 2.6 percent from July. But core inflation edged up to a six-month high. The central bank raised the interest rate in July, the first tightening measure since the last financial crisis.