BOK Raises Korea Growth Forecast

Governor Shin Hyun-song's first policy meeting resulted in a 'hawkish hold,' with the central bank signaling that future rate hikes remain on the table to combat inflation.

The revised growth forecast reflects the massive impact of the global AI boom on Korea's chip manufacturing sector.

However, policymakers remain concerned about rising energy costs and currency volatility driven by the Middle East conflict.

The bank also projected that consumer inflation will remain above target for the remainder of the year.