Bank of Korea deputy governor Ryoo Sangdai told reporters in Samarkand that the central bank should pause its policy rate cuts and consider hikes. The remark follows a 2% growth forecast and 2.2% inflation projection for 2024, with the benchmark rate unchanged since July 2023. Ryoo pointed to resilient growth amid Middle East tensions today.

Ryoo cited unexpectedly strong semiconductor shipments and pressure from the Iran‑U.S. crisis that could lift prices beyond expectations. Prices face “significant upward pressure” even after government stabilisation measures. The central bank’s policy board remains open to a March‑or‑May hike, but will wait for fresh data before deciding in the coming months to remain data‑driven and.

The won has slid to its weakest level against the dollar since the global financial crisis, yet markets see no immediate concern. Ryoo noted a 1.7% rebound in first‑quarter growth as “surprising,” highlighting the economy’s resilience against external shocks. He warned that the chip cycle’s duration could pose a longer‑term risk to the future of.

With the Bank of Korea poised to reassess its rate policy, investors will watch the May 28 meeting for a possible shift. A hike could tighten credit, lift the won, and temper semiconductor‑driven inflation. The decision will signal how the central bank balances growth resilience with rising price pressures in the near term for economic.