Bank of Korea likely to raise interest rates further, outgoing deputy chief says

Key facts

• The Bank of Korea is expected to raise interest rates further.
• The primary reason for potential rate hikes is to combat persistent inflation.
• Domestic economic recovery is a key concern.
• Demand-driven inflation is another key concern.
• Ryoo Sang-dai is the outgoing deputy chief of the Bank of Korea.
• The monetary policy committee will consider these factors in future decisions.

The Bank of Korea is anticipated to implement further interest rate hikes as a measure against persistent inflation, stated Ryoo Sang-dai, the outgoing deputy chief of the central bank. Ryoo identified the ongoing domestic economic recovery and demand-driven inflation as the principal concerns influencing this outlook. These factors are expected to guide the monetary policy committee's future decisions regarding interest rates. The central bank's objective is to stabilize prices while supporting economic growth. The deputy chief's remarks suggest a continued focus on tightening monetary policy to curb inflationary pressures that have shown resilience. This stance indicates that the bank is prioritizing price stability in its current economic strategy.