Bank of Korea Governor Shin told a parliamentary committee the central bank sees a need to tighten monetary policy as semiconductor-led growth continues to support the economy. He said a rate hike should come "at an appropriate time" and that timing will depend on the degree of inflationary pressure, the pace of the recovery and financial stability. Shin expects demand from the recovery to offset downward pressure from lower global oil prices and said consumer inflation will remain above target.

Bank of Korea Governor Shin told a parliamentary committee the central bank sees a need to tighten monetary policy as semiconductor-led growth continues to support the economy. He said a rate hike should come "at an appropriate time" and that timing will depend on the degree of inflationary pressure, the pace of the recovery and financial stability. Shin expects demand from the recovery to offset downward pressure from lower global oil prices and said consumer inflation will remain above target. The next BoK policy meeting is July 16.