Bank of Korea Deputy Governor Ryoo Sangdai said the central bank may need to further raise interest rates as inflation remains above target and economic growth is strong.
Ryoo Sangdai, the outgoing Senior Deputy Governor of the Bank of Korea, stated on Tuesday that the central bank will likely need to further raise interest rates as economic growth continues to transmit to core inflation. He pointed out that South Korea's overall CPI rose by 2.8% year-on-year in July, and core CPI increased to 2.6%, both exceeding the central bank's 2% inflation target. Ryoo also mentioned that South Korea's Q2 GDP grew by 0.6% quarter-on-quarter, and exports in July increased by nearly 70% year-on-year, indicating stronger-than-expected economic performance, which supports the central bank's tight monetary stance. The timing and pace of future rate hikes will depend on new data, and the updated economic growth and inflation forecasts this month will be an important basis for the policy meeting on August 27. Ryoo's term will expire on August 20, prior to the policy meeting.
Source:华尔街见闻 · Source Link
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