Bank of Korea Governor Shin Hyun-song says the central bank will need to raise policy rates at an “appropriate time,” reiterating a hawkish view ahead of a widely expected decision next week. Speaking to South Korea’s National Assembly, Shin links the timing of any hike to a range of factors rather than a single data point. He highlights that inflation remains above the target and is expected to stay elevated for a considerable period, even as some external pressures ease. Shin also points to the balance between improved economic growth and financial stability risks, saying the BOK will consider inflation, growth conditions, and risks to the financial system. In discussing the broader outlook, Shin notes the economy is expected to remain solid, supported by the semiconductor industry cycle, and that tensions in the Middle East have eased compared with earlier periods. He further emphasizes that the BOK is working to develop policy recommendations from a neutral, longer-term perspective, including structural issues such as low birth rates, an aging population, balanced regional development, and climate change.
Bank of Korea Governor Shin Signals Possible Rate Hike Ahead of Next Meeting
Bank of Korea Governor Shin Hyun-song says the central bank will need to raise policy rates at an “appropriate time,” reiterating a hawkish view ahead of a widely expected decision next week. Speaking...
- Bank of Korea Governor Shin Hyun-song tells parliament that a rate hike may be needed at an appropriate time.
- He says the BOK will consider inflation staying above target, growth conditions, and financial stability risks.
- Shin says inflation is expected to remain elevated for a considerable period.
- He cites solid growth outlook supported by the semiconductor cycle.
- He notes eased geopolitical tensions in the Middle East and references longer-term structural issues in policy thinking.
The governor of the Bank of Korea (BOK) said Thursday he sees the need for a rate hike at an appropriate time, noting the central bank will consider various factors, including inflation hovering above target and other financial risks. BOK Gov. Shin Hyun-song made the remark during a session at the National Assembly, also noting the Korean economy is expected to maintain solid growth on the back of the semiconductor industry cycle and eased geopolitical tensions in the Middle East. "I believe there needs to be a rate hike at an appropriate time," Shin said. "We need to consider factors such as inflation hovering above target, improved growth and extended risks for financial stability." Shin added inflation is expected to remain elevated for a "considerable period" despite eased Middle East-related factors, as the impact of previous cost increases continues. The BOK is making efforts to come up with policy recommendations from a neutral and longer-term perspective, touching on structural issues, such as low births, aging demographics, balanced regional growth and climate change, he added.
1 hour agoBank of Korea Governor Shin Hyun Song told parliament that policy rates will need to rise at an appropriate time, reinforcing the bank’s hawkish stance just a week before a widely expected rate hike.
3 hours ago
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