％Effective Federal Funds Rate
EFFR
Mentioned
Impact on stocks 1
Others
BOK board member signals further rate hikes, eyes inflation above target
MacroDigital Finance
Kim Jong-hwa, a board member of the Bank of Korea, said the BOK will weigh both domestic and external factors, including the effects of its two previous rate hikes, before deciding on the timing of any further increases. Kim said South Korea's economy will remain strong while inflation is likely to stay above target for a prolonged period, with price pressures from Middle East conflict and surging exports among key factors to watch. In a statement released alongside the BOK's semi-annual monetary policy report, he said the BOK will closely monitor how the two previous rate hikes affect the economy before considering its next policy move. The BOK report said global investment in artificial intelligence, a driver of South Korea's semiconductor exports, is expected to keep expanding for a long time. Last month the BOK raised its policy rate by 0.25% to 3.00%, its second consecutive increase, as inflation remained above target and financial stability risks persisted.