Bank of Korea deputy chief Ryoo Sang-dai says it is time to consider rate hikes, with forward guidance set to turn hawkish at the May 28 meeting under new governor Shin Hyun-song.
Bank of Korea deputy chief Ryoo Sang-dai says it is time to consider rate hikes, with forward guidance set to turn hawkish at the May 28 meeting under new governor Shin Hyun-song. Summary: Bank of Korea senior deputy governor Ryoo Sang-dai said forward guidance would become more hawkish at the next policy meeting and that it was time to consider rate hikes, per pool reports shared by the central bank Ryoo said economic growth was tracking at no lower than 2.0% since April while inflation was running above 2.2%, making further rate cuts inappropriate, per the same pool reports Ryoo said inflation pressure remained high even after government measures including nationwide fuel price caps, per the pool reports The Bank of Korea held rates steady last month in a wait-and-see approach as uncertainty from the Iran war warranted further monitoring of its impact on growth and inflation, per the report Korea’s economy delivered its fastest quarterly growth in nearly six years last quarter, driven by a boom in chip exports, per the report Ryoo said the won hovering at 17-year lows around 1,470 to 1,480 per dollar was higher than historical levels but not viewed as problematic The BOK’s next policy meeting is scheduled for May 28, the first under new governor Shin Hyun-song who took office on April 21 Main article: The Bank of Korea is preparing to shift its monetary policy stance toward tightening, with senior deputy governor Ryoo Sang-dai saying it is time to consider interest rate hikes and signalling that forward guidance will turn hawkish at the central bank’s next meeting later this month.
Ryoo, a member of the BOK’s seven-seat monetary policy board, made the remarks at a press conference on the sidelines of the annual Asian Development Bank meeting in Samarkand, Uzbekistan. He said that since April, the economic picture had clarified sufficiently to justify a change in direction, with growth tracking at no lower than 2.0% and inflation running above 2.2%. In those…