The Bank of Korea (BOK) Governor Lee Ju-yeol said that they are committed to adjusting policy interest rates as an economic recovery takes shape and price pressures tighten heading into 2022.

Key quotes

"The degree of monetary policy easing will be adjusted appropriately in line with the improvement of economic conditions,"

"We should look carefully to see if there is a possibility that inflationary pressure would last longer than expected."

According to the Reuters poll, the interest rate is seen reaching higher to 1.25% in the first quarter and 1.50% by the end of 2022.

USD/KRW reaction

USD/KRW fell from one-week highs of 1,190.87 on Governor Lee’s comments. At the time of writing, the pair is losing 0.05% on the day, trading at 1,187.