The Governor of the Bank of Korea said it is necessary to raise interest rates at the appropriate time.

The governor of the Bank of Korea said on Friday that due to the increase in oil prices caused by the conflict in the Middle East, South Korea's inflation rate is expected to exceed the target level for a considerable period of time, so it is necessary to raise interest rates as scheduled. Governor of the Bank of Korea, Shin Hyun-sung, said: "Monetary policy often needs to balance various policy objectives, but this kind of contradiction is not prominent at the moment. Therefore, to stabilize prices, it is appropriate to raise interest rates on time." He also stated that the data announced after the monetary policy meeting in May clearly points to the same policy direction. Data released last week showed that South Korea's consumer price index in May rose by 3.1% year-on-year, reaching a two-year high, exceeding market expectations, and providing a basis for tightening monetary policy as early as next month.