Bank of Korea Governor Shin says will raise interest rate on BoK's special loan programs, adds every part of components making up South Korea GDP are robust

Says:

• Assessing the strength of demand in the economy will be important.
• Demand side price pressure may need careful monitoring as it can turn into stronger inflation pressure if robust increase in GDI is sustained.
• We will respond until inflation stabilises at the BOK's target level. How actively BOK would respond to inflation risks will depend on the data, says Q2 GDP data will be thoroughly assessed.
• Don't agree with the view that today's rate hike raises volatility in the stock market, adds could have hiked in May, but did not because we did not have enough data.
• BoK is likely to raise growth forecasts during the August revision.