Bank of Korea governor: “Inflation exceeds target, making a rate hike necessary” (9day announcement)
Bank of Korea Governor Shin Hyun-song 9day said that inflation exceeded the target, making a base-rate hike necessary at an appropriate time. On the same day, the Korea Investment Corporation (KIC) announced that its investment return from this year’s 1month through the end of 5month was 5.22%, and investment gains amounted to 121hundred million dollars.
![Bank of Korea governor: “Inflation exceeds target, making a rate hike necessary” (9)/blog-images/gen-b967a3f0-045a-4b9d-9171-a609b13b6956.jpg)
Bank of Korea Governor Shin Hyun-song 9day said in a National Assembly work report that a base-rate hike was necessary because inflation was exceeding the target. The remarks were directly connected to rate decisions and financial-market movements.
Governor Shin said, “Because inflation is exceeding the target, there is a need to raise the base rate at an appropriate time.” In response to a question about the possibility of “one big step,” he replied, “I was speaking in general terms.”
Regarding the won, he expressed the view at the same event that there was considerable room for the won to turn stronger going forward. The reference to a stronger won is seen as a connection between foreign-exchange market movements and the profitability of exporting companies.
Korea Investment Corporation (KIC) 9this year 1from the month 5through the end of the month, the investment return was 5.22% and investment gains totaled 121hundred million dollars. The KIC announcement provides official figures showing the performance of foreign-currency asset management since the beginning of the year.
The remarks by the Bank of Korea governor and the KIC announcement were both 9issued on the day. Both are used as indicators for monitoring financial markets and foreign-exchange flows.