The Bank of Korea stated that it will maintain its stance on raising interest rates in the future.

Odaily Planet Daily News The Monetary Policy Committee of the Bank of Korea stated on the 28th that it will continue to maintain its stance on raising interest rates in the future, while comprehensively considering inflation and financial stability factors. The Bank of Korea previously announced its first rate hike in three and a half years. Explaining the background of this rate hike, the committee stated, "As economic growth strengthens driven by exports and investment, inflation is expected to remain above the target level for a considerable period, and risks to financial stability also persist." The committee predicts that "supported by a strong semiconductor cycle, exports and investment will continue to see high growth. As income conditions improve, driving the expansion of consumption recovery, the economy is expected to maintain steady growth. This year's economic growth rate is expected to be significantly higher than the May forecast of 2.6%."

Regarding prices, the committee expects inflation to remain high for a considerable period. The committee also assessed that the volatility of the Korean won against the US dollar has increased, and the simultaneous rise in housing-related loans and other loans has driven a sharp increase in household loans, while the upward trend in housing prices in the Seoul metropolitan area has also further expanded. Considering the above factors, the committee stated, "It is currently judged necessary to continue maintaining a stance on raising interest rates in monetary policy." (Jinshi)