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Majority of BOK board sees necessity for another rate hike

SEOUL : A majority of the Bank of Korea's board members agreed that another interest rate hike is needed soon as price pressures grow amid a build-up of financial imbalances, minutes from the central bank's October meeting showed on Tuesday.

On Oct. 12, the BOK held the benchmark interest rate [KROCRT=ECI] steady at 0.75per cent, but flagged further tightening could come as soon as November.

On top of the two dissenters who voted to raise rates in October - Suh Young-kyung and Lim Ji-won, - at least three others said the bank will need to hike as soon as November to curb rising inflation and household debt.

South Korea's October inflation, the final price reading before the BOK's policy decision on Nov 25., showed consumer prices accelerated to a near 10-year peak.

(Reporting by Cynthia Kim; Editing by Shri Navaratnam)

Source: Reuters

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