Overview
- Senior Deputy Governor Kwon Min-soo said policy decisions must be made "very carefully" and that the Bank of Korea will remain flexible if needed.
- Kwon highlighted that economic growth has strengthened more than expected while inflation is running above the bank's 2% target.
- He warned that rate increases bring benefits but also side effects and said officials must balance growth trends, inflation and financial stability when setting policy.
- Kwon will sit on the seven-member Monetary Policy Board and will participate in the next policy meeting where markets are watching for a rare back-to-back rate hike.
- Background context: the central bank delivered its first rate increase in about 3½ years in July as brisk growth and higher prices pushed officials to signal more hikes could follow.