Overview
- Senior deputy governor Ryoo Sang-dai said the central bank will tighten its guidance at the next meeting and that it is time to consider raising interest rates.
- Ryoo said growth has held near or above 2% since April and inflation has run above about 2.2%, which he argued rules out more cuts.
- The won has hovered near 17-year lows around 1,470 to 1,480 per dollar, which lifts import costs and feeds price pressures, though Ryoo did not label the level a threat.
- South Korea just posted its fastest quarterly growth in nearly six years on a surge in semiconductor exports, giving more room to fight inflation even as reliance on chips draws scrutiny.
- The May 28 decision will be the first led by new governor Shin Hyun-song after the bank kept rates steady last month to watch the effects of the Middle East conflict and higher energy costs.