Bank of Korea Senior Deputy Governor: Necessity to continue raising interest rates, future pace to depend on data

August 11th. Yoon Seong-dae, Senior Deputy Governor of the Bank of Korea, stated that it is currently necessary to continue raising interest rates, and the future rate hike pace will be adjusted based on changes in economic growth and inflation data. Unless there is a major shock or special factor, the likelihood of further rate hikes is high. The Bank of Korea had previously raised interest rates for the first time in three and a half years and signaled the possibility of further tightening monetary policy.

He pointed out that current policy-making needs to focus on growth and inflation outlook, and decide on the subsequent policy path based on export, consumption, and other economic data. The recent performance of the South Korean economy, supported by semiconductor exports driven by the AI industry, has been stronger than expected, increasing inflationary pressures.