Bank of Korea Governor Shin Hyun-song Warns Against Falling Behind on Inflation Control

Bank of Korea Governor Shin Hyun-song said policymakers must not fall behind the curve in controlling inflation, citing rising urgency to act early. According to Odaily, Shin said concerns about inflation pressures have increased as conflict in the Middle East continues. He said the remarks may reinforce market expectations that the Bank of Korea could resume monetary tightening as soon as next month. Shin added that the Iran crisis is pushing up energy prices and disrupting supply chains. Shin also said that, taken together, current developments in growth, inflation, and financial stability point to a relatively clear direction from a monetary policy perspective. He said the central bank governor must consider multiple factors, but when price stability is threatened, action must not come too late. He added that even if cost-relief measures ease some pressure, South Korea’s inflation may remain above its target level for an extended period.