The Bank of Korea said it would determine the timing and pace of future benchmark interest rate hikes based on changes in domestic and external conditions. In particular, cost pressures due to the worsening situation in the Middle East and the favorable semiconductor exports are cited as major considerations for their impact on domestic demand and prices. The BOK also emphasized that it will closely monitor the housing market in the Seoul metropolitan area, household debt risks, and exchange rate volatility due to changes in US Fed policy from a financial stability perspective. Meanwhile, Vice Governor Park Jong-woo said he would comprehensively review data before the meeting to decide on the possibility of raising the benchmark interest rate in October.
