Bank of Korea's senior deputy governor Sang-dai said Sunday that it was time to stop rate cuts and start thinking about rate hikes, taking into account persistent inflationary pressures despite measures such as nationwide fuel price caps, Reuters reported Monday.
Since April, expectations suggest economic growth will remain close to 2%, while inflation is likely to surpass 2.2%, Ryoo said, backing his claim for rate hikes ahead.
In April, the South Korean central bank kept interest rates steady amid increasing uncertainty from Middle East tensions and its possible effect on growth and inflation. Ryoo's remarks followed the country recording its fastest growth in nearly six years in the first quarter, driven by better-than-expected chip exports, the report said.
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