Bank of Korea Governor Shin Hyun-song stated on July 16 that the central bank could have raised interest rates in May but lacked sufficient data to assess the economic situation at that time.
During a press conference following the Bank of Korea's decision to increase the base rate from 2.50% to 2.75%, Governor Shin addressed criticisms that the May rate freeze was a mistake. He explained, "Given the situation in the Middle East and other factors, there were uncertainties that were not clearly evident at the time. I believed it was prudent to wait and still hold that view."
He added, "Since May, various data have indicated that our economy is much more robust, and the growth outlook has shifted positively. The growth forecast of 2.6% we provided earlier now seems too low based on current assessments."
Governor Shin hinted at a significant upward revision of the growth forecast in the upcoming economic outlook report next month, stating, "I will have the opportunity to explain the substantial upward adjustments to the growth rate in the August revised economic outlook."
* This article has been translated by AI.
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