BOK signals continued monetary tightening amid rising inflation, sound economic growth

Korea's central bank said Wednesday it is necessary to maintain a monetary tightening mode as inflation pressure remains high and the country's economy is likely to continuously grow.

Earlier this month, the Bank of Korea (BOK) raised its benchmark rate by a quarter percentage point to 2.75 percent, the first rate hike in 3 1/2 years.

The move was aimed at combating escalating prices amid a volatile local currency and comes as robust exports are expected to sustain solid economic growth.

"Going forward, we judge that there is a need to maintain a rate hike trend and will decide on the rate level and the timing, taking into consideration the degree of inflation pressure, economic trend and financial stability," it said.

The central bank said the rate hike earlier this month was made as inflation is expected to exceed its target for a long period of time amid a pickup in the economy and risks to financial stability still remain in place.

The central bank said the country's economic growth will continue to show solid growth backed by strong exports and investment.

The Korean economy grew 0.6 ...