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Bank of Korea’s Rhee Puts Inflation Battle Before Growth for Now

  • BOK forecasts 4.5% inflation in 2022 vs earlier 3.1% view
  • Cuts growth projection for this year to 2.7% from 3%
Rhee Chang-yong, governor of the Bank of Korea.

Rhee Chang-yong, governor of the Bank of Korea.

Photographer: SeongJoon Cho/Bloomberg
Updated on

Newly installed Bank of Korea Governor Rhee Chang-yong said the central bank must prioritize tackling inflation over growth for the time being after raising interest rates earlier in the day and forecasting much stronger price growth this year.

“The most important message from today’s decision is the need for a preemptive response to the negative ripple effects of inflation,” Rhee said Thursday after helming his first policy meeting as governor.