Inflation risks rise, Bank of Korea Governor hints at readiness to raise interest rates
Odaily Planet Daily News: Bank of Korea Governor Rhee Chang-yong warned that the central bank cannot afford to fall behind the curve in controlling inflation. This statement sends a clear signal that policymakers are feeling increasing urgency to act early.
Rhee Chang-yong stated that concerns about inflationary pressures have risen as the Middle East conflict continues. These comments could strengthen market expectations that the Bank of Korea may resume its tightening monetary policy as soon as next month. The ongoing crisis in Iran is driving up energy prices and disrupting supply chains.
Rhee Chang-yong also noted that, taken together, the current dynamics of growth, inflation, and financial stability point to a relatively clear direction from a monetary policy perspective. While the central bank governor must consider multiple factors, when price stability is under threat, it is essential to avoid acting too late. Even as cost mitigation measures alleviate some pressure, inflation in South Korea may remain above target levels for an extended period. (Jin Shi)
