Most Bank of Korea board members turn cautious on interest rates hikes

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Most Bank of Korea board members turn cautious on interest rates hikes

SEOUL Most Bank of Korea board members turned cautious about interest rates rises even though a majority voted for one on that day, meeting minutes showed on Tuesday.

Two of six members said caution was needed in relation to any later tightening, because one of those two said caution was needed in relation to any later tightening.

Three who did vote for the Jan. 13 rise called for a cautious stance to follow.

After January 13 there was a tightening of monetary policy as appropriate, according to one who voted for the rise.

In line with market expectations, the country's policy interest rate was raised by 25 basis points to 3.50 per cent.

A member who voted for the rise said that we need to be cautious when making decisions about further interest rate increases, as well as the sluggish economic growth and the burden on financial stability.

The minutes don't identify speakers and exclude remarks by Governor Rhee Chang-yong.

After the rise was announced, Rhee suggested that the Bank of Korea might pause its tightening drive. Market interest rates indicate that investors don't expect further interest rate increases.