Bank of Korea Governor Shin Hyun-song reaffirms the need for a base-rate hike; household loans surge by 6month 8trillion 3,000hundred million
Bank of Korea Governor Shin Hyun-song said that 2026-07-09 inflation exceeded the target, making a base-rate hike necessary. On the same day, the Bank of Korea said that accumulated current-account surpluses left considerable room for the won to strengthen, and 6monthly household loans increased by 8trillion 3,000hundred million won, approaching the annual management target.
![Bank of Korea Governor Shin Hyun-song reaffirms the need for a base-rate hike; household loans surge by 6month 8trillion 3,000hundred million/blog-images/gen-c92ae863-c3e5-4959-acd7-c745b3b2f80b.jpg)
Bank of Korea Governor Shin Hyun-song said that 2026-07-09 inflation exceeded the target, making a base-rate hike necessary. The remarks could immediately affect investors in sectors sensitive to interest rates and exchange rates.
The governor said inflation was expected to exceed the target. Accordingly, he reaffirmed the position that a base-rate hike was necessary.
Governor Shin referred to an 'appropriate time' regarding the timing of the hike. However, he said the possibility of a sustained decline in the stock market was limited.
The Bank of Korea said that the large accumulation of a current account surplus leaves considerable room for the won to turn stronger. The won’s movements affect exporting and importing companies and the foreign exchange market.
Meanwhile, 6monthly household lending of 8trillion 3,000hundred million won surged, and the Bank of Korea warned that this figure was close to the annual management target. It said variables related to household credit are important in assessing financial stability.
The Bank of Korea said it would continue making monetary policy decisions based on three indicators: prices, the current account surplus, and household lending. The Monetary Policy Board officially makes related decisions.