Bank of Korea Needs Strong Signs Inflation Curbed Before Pivot
- Central bank governor discusses rates, credit and the economy
- Korea not ‘mechanically’ following US interest rates, he says
Bank of Korea Governor Rhee Chang-yong discusses monetary policy, inflation and the outlook for the economy.
Source: Bloomberg
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The Bank of Korea needs to see strong signs that inflation is under control before plotting any pivot away from policy tightening, Governor Rhee Chang-yong said Friday, dismissing as premature speculation about a return to easing next year.
The central bank came closer to the end of its tightening cycle when it raised the key interest rate by 25 basis points to 3.25% on Thursday. The BOK’s board holds a range of views on the terminal rate: three favor 3.5%, one thinks enough has been done, while two want the door kept open to going above 3.5%.