Bank of Korea’s new chief says monetary policy has to be cautious and flexible

[SEOUL] South Korea’s newly-appointed central bank governor said on Tuesday monetary policy needed to be cautious and flexible amid heightened inflation and growth uncertainty due to the Middle East conflict.

“As uncertainty has increased over inflation and growth paths due to the supply shock caused by the Middle East war, it is necessary to seek price stability and financial stability through cautious and flexible monetary policy operations,” Governor Shin Hyun Song said in his inauguration speech.

Shin said a rise in oil prices triggered by the Iran war had increased upward pressure on inflation and downward pressure on economic growth at the same time, along with heightened volatility in financial markets and accumulating risks of financial instability.

Shin, who began his four-year term as governor of the Bank of Korea on Tuesday, will chair his first policy meeting on May 28. REUTES