During a press conference on Thursday, the Bank of Korea (BOK) Governor Lee Ju-yeol said that he is planning “an orderly exit” from the current easy-money policy.
He said that he is thinking of raising rates “within this year,” though the exact timing and pace will depend on economic conditions.
The South Korean central bank has kept its policy rate at a record low of 0.50% since May 2020 to support economic growth, hit by the COVID-19 pandemic.
Market reaction
USD/KRW whipsawed on the comments from Governor Lee, now trading flat around 1,135.