Seoul - South Korea's new central bank governor, Shin Hyun-song, stated Tuesday that monetary policy must remain cautious and flexible. This stance comes amid rising inflation and uncertain economic growth, directly linked to the Middle East conflict.
In his inauguration speech, Governor Shin highlighted that increased uncertainty from supply shocks, particularly the Iran war's impact on oil prices, is creating upward pressure on inflation and downward pressure on economic growth. He also noted heightened financial market volatility and accumulating risks to financial stability.
Shin, who commenced his four-year term as Governor of the Bank of Korea, is set to chair his first policy meeting on May 28.