Bank of Korea governor says 'rate hike at an appropriate time,' 7month 16day Monetary Policy Board meeting to be watershed
Bank of Korea Governor Shin Hyun-song mentioned a 'base-rate hike at an appropriate time' 7month 9day in a report to the National Assembly and presented a forecast that high inflation would persist for the time being. 7month 16The possibility of a hike has grown at the Monetary Policy Board meeting on day, and the market is watching the pace of future hikes and signals of consecutive increases.
Bank of Korea Governor Shin Hyun-song 7month 9day said in a work report to the National Assembly's Finance and Economy Planning Committee that 'it is desirable to raise the base rate at an appropriate time.' At the same meeting, he said he judged that upward pressure on prices would persist for the time being.
The Bank of Korea governor's remarks came 7month 16day, ahead of the Monetary Policy Board's scheduled decision. They were understood as remarks hinting at the policy direction at a point one day before the rate decision.
Among financial authorities and in the market, 7month 16day meeting, observations have emerged that opinions are converging toward raising the base rate. In particular, a forecast has been raised that agreement among the members is highly likely to proceed unanimously.
Market participants’ attention is focused less on the decision itself than on the pace thereafter. Whether there will be “consecutive hikes” and whether signals of additional rate increases will emerge have been identified as key points to watch.
The Bank of Korea assessed that the possibility of a trend-based decline in the stock market during the same period was limited. However, it added that financial market volatility could increase depending on inflation trends and the outcome of the committee’s decision.
Financial markets and related sectors are watching closely 7 month 16 day the Monetary Policy Board’s minutes and decision statement, as well as the remarks by its members.