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

The new senior deputy governor of the Bank of Korea (BOK) has emphasized the need for a prudent and flexible approach to monetary policy as inflation continues to rise and speculation grows about an upcoming interest rate hike. Senior Deputy Gov. Kwon Min-soo, speaking at his inauguration ceremony, cautioned that while raising rates can be beneficial, it may also have unintended consequences.

"This is a time when we must make policy decisions in a balanced and cautious manner, while remaining flexible when necessary," Kwon stated. In determining interest rates, the BOK must consider factors such as economic growth, inflation, and financial stability. Kwon, who began his four-year term on Friday, also serves as an ex officio member of the Monetary Policy Board and will join as a board member for the upcoming rate-setting meeting on Thursday.

His remarks follow the board's decision to increase the benchmark rate by 0.25 percentage points to 2.75% at their last meeting in July, as the central bank remains committed to controlling inflation.