BOK Governor Shin calls for preemptive monetary policy, says rate hikes will help cool housing prices

Bank of Korea Governor Shin Hyun-song said Thursday that preemptive monetary policy action is necessary to ensure macroeconomic stability.

Speaking at a press briefing on the monetary policy direction Thursday morning, Shin explained the rationale behind consecutive benchmark interest rate hikes, saying the Korean economy is expected to maintain solid growth next year as well as this year, supported by a strong semiconductor sector and improving income conditions, while core inflation is also seen remaining elevated.

"Most research shows that preemptive monetary policy action helps anchor inflation expectations sooner, reduces the degree of tightening required and eases the burden on growth," Shin said. He added that such an approach "will also help moderate the recent rise in housing prices in the Greater Seoul area."