Bank of Korea Governor Signals Rate Hike amid Elevated Inflation

Shin Hyun-song, governor of the Bank of Korea, said that a base rate hike may be required at an appropriate time, as inflation remained above target and other financial risks, Yonhap News reported Thursday, citing Shin from a session at the National Assembly. Shin said that the South Korean economy is expected to remain resilient ahead, supported by the semiconductor cycle and easing Middle East tensions. Shin expects inflation to remain elevated for some time despite lower geopolitical risks, while the Bank of Korea continues to assess broader structural issues, which comprise demographic changes and climate issues, the report said.