Seoul: The governor of the Bank of Korea (BOK) stated on Thursday the necessity of a rate hike at an appropriate time, emphasizing that the central bank will evaluate various factors, including inflation above target and other financial risks.

According to Yonhap News Agency, BOK Gov. Shin Hyun-song made these remarks during a session at the National Assembly. He noted the South Korean economy is projected to maintain robust growth, supported by the semiconductor industry cycle and reduced geopolitical tensions in the Middle East. Shin emphasized the need for a rate hike by considering factors such as inflation remaining above target, improved growth, and potential risks to financial stability.

Shin further explained that inflation is likely to persist for a "considerable period," even with the easing of Middle East-related factors, due to the lingering impacts of previous cost increases. The BOK is striving to formulate policy recommendations from a neutral and long-term perspective, addressing structural issues such as low birth rates, aging demographics, balanced regional growth, and climate change.