New BOK senior deputy gov. calls for prudent, flexible monetary policy

SEOUL, Aug. 21 (Yonhap) -- The senior deputy governor of the Bank of Korea, Kwon Min-soo, has advocated for a careful and adaptable monetary policy as the likelihood of a rate increase during next week's policy meeting rises due to surging inflation. In an interview following his inauguration, Kwon emphasized the need for balanced and cautious decision-making while remaining flexible when necessary.

He highlighted the importance of considering both economic growth and inflation, as well as financial stability, when determining interest rates. As a member of the Monetary Policy Board, Kwon will participate in the upcoming rate-setting meeting scheduled for next Thursday. The Bank of Korea recently raised the benchmark interest rate by 0.25 percentage points to 2.75 percent in July.

With the central bank consistently emphasizing its commitment to tackling rising inflation, the possibility of a rare consecutive rate hike next week is under scrutiny. The board's decision will be influenced by the country's strong economic growth, driven by robust semiconductor exports and consumer prices significantly above the 2 percent target set by the Bank of Korea.