SEOUL, Sept 10 (Reuters) – A board member of the Bank of Korea said on Thursday the central bank would assess external and internal policy conditions, including the impact of the previous two rate hikes, to determine the timing and pace of further tightening.
• “I think it is necessary to assess changes in external and internal conditions to determine the timing and pace of additional hikes,” Kim Jong-hwa said in remarks released with the central bank’s semiannual monetary policy report.
• Economic growth will remain robust and inflation will exceed the target level for a considerable period of time, Kim said, noting price pressure from the Middle East conflict and the export boom as the most important factor.
• Kim said the central bank would also closely monitor the impact of the previous two increases in interest rates.
• Global AI investments, which have been leading South Korea’s semiconductor export boom, are expected to expand for a considerable time on growing demand and intensifying competition, the BOK said in the report.
• Last month, the BOK raised its benchmark interest rate by a quarter percentage point to 3.00%, delivering a second straight increase as inflation stays above target and financial stability risks persist.
(Reporting by Jihoon Lee; Editing by Neil Fullick)
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