Bank of Korea Governor: Interest Rate Policy to Focus Primarily on Inflation Trends

Odaily News: Bank of Korea Governor Rhee Chang-yong stated on the 12th that "the most important factor" in monetary policy decisions is "the inflation trajectory." On that day, at the National Assembly's Strategy and Finance Committee parliamentary audit meeting held at the Bank of Korea headquarters in Jung-gu, Seoul, Rhee made the above remarks in response to a question about "whether the Bank of Korea will raise interest rates again in October or November." Rhee stated that the Bank of Korea is particularly concerned that inflationary pressures will have a greater impact on low-income groups and economically vulnerable segments of society. He said: "One point we particularly emphasize is that due to inflation, low-income and vulnerable groups suffer the most harm." He also noted that vulnerable borrowers (weakened borrowing groups) affected by high interest rates will feel pressure from the central bank's monetary policy. Market interpretation suggests that the Bank of Korea, when considering its interest rate path, will continue to seek a balance between controlling inflation and alleviating the pressure that high interest rates place on households and businesses.