Central Banks
Bank of Korea May Keep Policy Tight Another Year, Ex-Member Says
- Former deputy governor sees opportunity to tame household debt
- South Korea’s inflation rate accelerated to 3.8% in October
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The Bank of Korea will probably keep interest rates elevated for another year to ensure inflation is brought under control, a former board member said, warning markets against rallying on premature expectations for a policy easing.
“Higher for longer is inevitable. It is likely to stay that way and should stay that way,” Lee Seung-heon, a former BOK senior deputy governor, said in an interview on Friday. “Market participants should keep the door open to the possibility of inflation accelerating. They shouldn’t just jump back in with everything.”