BANK OF KOREA June minutes flagged rate-hike risks and repeated language used ahead of prior tightening, suggesting a possible policy move in July while aiming to limit market disruption. The minutes stressed the side-effects of higher borrowing costs, echoing June 2022 wording that questioned whether corporate credit demand would remain resilient; roughly three weeks after that meeting the bank implemented a historic 50bp hike. The pattern offers fresh clues ahead of Thursday’s rate decision. C

BANK OF KOREA June minutes flagged rate-hike risks and repeated language used ahead of prior tightening, suggesting a possible policy move in July while aiming to limit market disruption. The minutes stressed the side-effects of higher borrowing costs, echoing June 2022 wording that questioned whether corporate credit demand would remain resilient; roughly three weeks after that meeting the bank implemented a historic 50bp hike. The pattern offers fresh clues ahead of Thursday’s rate decision. Committee members warned rising borrowing costs will exacerbate distress in vulnerable sectors and said fiscal support may be needed while urging banks to tighten loan screening and firms to pursue restructuring.