During a press conference on Thursday, the Bank of Korea (BOK) Governor Lee Ju-yeol said that the interest rate hike decision was not unanimous.
Lee added that board member Joo Sang-Yong dissented to Thursday’s rate decision.
The Governor expects a higher policy rate to curb household debt growth.
Additional quotes
Monetary policy tightening alone won't resolve financial imbalances.
Can't say Thursday’s rate hike is 'delayed'.
Inflation is not excessively high.
Recent declines in KRW seems to be due to stronger USD.
S. Korea's potential growth rate at around 2% for this year and the next.
The South Korean central bank raised its policy rate from a record low of 0.50% to 0.75% in its August meeting, the first hike in almost three years.
Market reaction
USD/KRW is extending its upside on the above comments, flirting with daily highs of 1,169.17, adding 0.45% on the day. The South Korean won (KRW) fails to benefit from the rate lift-off.