SEOUL, Sept 22 (Reuters) - A board member of the Bank of Korea said on Tuesday the central bank will determine the timing and pace of further interest rate hikes by closely assessing inflation, economic growth and financial stability.
- "Going forward, factors such as accumulating financial imbalances, sector-specific income improvements, global market trends and geopolitical risks will likely shape financial stability," Chang Yong-sung said in remarks released with the central bank's financial stability report.
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To prevent financial imbalances from deepening, Chang stressed the need to operate monetary and macroprudential policies in a complementary manner, while seeking policy coordination with fiscal and financial authorities to micro-manage difficulties faced by vulnerable groups.
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The BOK on August 27 raised its benchmark interest rate by a quarter percentage point to 3.00%, delivering a second straight increase as inflation remained above target and financial stability risks persisted.
Reporting by Cynthia Kim; Editing by Jacqueline Wong
Source: Reuters