The Bank of Korea flagged the need for timely interest rate hikes, as inflation is expected to remain above its 2% medium-term target for a considerable period, Reuters reported.
Governor Shin Hyun-song was quoted Friday as saying that the central bank will "raise interest rates on time with a focus on price stability," adding that monetary policy conditions suggest one clear direction.
Recent government data showed that consumer price growth in South Korea reached a two-year high in May.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)