BOK chief signals additional rate hikes to tame inflation

Bank of Korea (BOK) Gov.

Shin Hyun-song reaffirmed the central bank's rate-hike stance Wednesday, reinforcing market expectations that another rate increase could come as early as August.

"I believe it is most reasonable to maintain the rate-hike stance to bring down core inflation," Shin said during a National Assembly session in response to a lawmaker's question on whether the BOK plans to raise its benchmark interest rate one or two more times this year.

"The timing and pace of any further rate hikes will depend on incoming economic data and overall economic conditions," he added.

The remarks have reinforced expectations that the Monetary Policy Board could deliver a second consecutive rate hike at its next rate-setting meeting set for Aug.

27.

The central bank raised its benchmark interest rate by 0.25 percentage points to 2.75 percent at its July 16 policy meeting, marking its first rate increase in three and a half years.

At the time, the central bank cited persistent inflationary pressures alongside stronger-than-expected economic growth driven by robust semiconductor exports.

Shin ...