South Korea's new central bank governor Rhee Chang-yong said on Tuesday, “they need to monitor June inflation data, FX market and other data before assessing whether a big step hike is needed.”
Monetary policy should focus on stabilizing inflation until current inflationary pressure eases.
Widening interest rate differential with the US could adversely impact FX market, capital flows.
Will act to stabilize FX market if herd-like behaviours seen.
June CPI likely to be higher than may data.