BOK Governor Shin flags inflation, nominal GDP as key guides for October rate decision

Bank of Korea Governor Shin Hyun-song identified August and September inflation data and second-quarter nominal GDP as the key indicators for the next monetary policy decision.

Speaking at a monetary policy press briefing Thursday morning, Shin said the bank would have August and September inflation figures in hand before the October Monetary Policy Board meeting. "Inflation data are important," he said, adding that the bank also needed to review the preliminary second-quarter GDP figures — particularly the nominal GDP data due out in early September.

Shin added that sentiment indexes also mattered. "Strong growth and improved income conditions appear to be reflected in business sentiment indexes," he said. "There are channels through which this should flow to all economic actors, but the transmission is still slow."