South Korea Central Bank Governor Reiterates Need to Tighten Policy Soon

South Korea’s central bank governor said the Bank of Korea still sees a need to tighten monetary policy as strong, semiconductor-led growth continues to support the economy. According to Jin10, Governor Rhee Chang-yong told a parliamentary committee meeting on Thursday that a rate hike would be needed “at an appropriate time in the future,” and that the timing would depend on the degree of inflation pressure, the pace of the economic recovery, and financial stability conditions. Rhee said he expected stronger demand from the recovery to offset downward pressure from falling global oil prices, and that consumer inflation would remain above the target level. The Bank of Korea’s next policy meeting is scheduled for July 16.