Outgoing Bank of Korea senior deputy governor said strong growth feeding into potential inflation may require further rate increases, while won strength and recent equity moves give policymakers some policy flexibility. He said KOSPI’s recent drop and a stabilising won offer MPC members limited room for maneuver, but are not decisive. Policymakers will focus on whether core inflation remains elevated, whether growth can be sustained, and on financial-stability risks. Headline CPI fell to 2.8% la

Outgoing Bank of Korea senior deputy governor said strong growth feeding into potential inflation may require further rate increases, while won strength and recent equity moves give policymakers some policy flexibility. He said KOSPI’s recent drop and a stabilising won offer MPC members limited room for maneuver, but are not decisive. Policymakers will focus on whether core inflation remains elevated, whether growth can be sustained, and on financial-stability risks. Headline CPI fell to 2.8% last month but remains above the Bank of Korea’s target; core CPI rose to 2.6%. Some economists still expect another rate hike this month after a July increase.