BOK Warns of Considerably Stronger Inflation on US-Iran Crisis

Bank of Korea Governor Rhee Chang Yong warned that inflation may considerably outpace forecasts this year as the US-Iran conflict threatens the economy with a larger supply shock than seen after the Russian invasion of Ukraine.

Rhee’s comments followed the central bank’s decision earlier in the day to hold its seven-day repurchase rate at 2.5% on Friday. The unanimous decision was widely expected and extended a pause in place since July last year.