Moody's: Bank of Korea may see risks tilted towards prices coming under pressure again

Moody's economist Dave Chia stated that despite the cautious policy stance taken by the Bank of Korea, the central bank may believe that risks are leaning towards putting pressure on prices again. In a report, Chia wrote: "Currently, policy will remain firmly unchanged. But any actions taken next are increasingly likely to tighten rather than loosen." He pointed out that the increase in oil prices due to the Middle East conflict has reignited inflation risks in South Korea, and the rising fuel costs in the coming months could push overall inflation higher. He added that the weakening of the South Korean won is also a key policy concern, with the US dollar reaching close to 1,500 won, a level considered fragile rather than comfortable.