Bank of Korea Governor: No need to cut rates for now; whether the AI boom will push up the neutral policy rate remains to be seen.

PANews October 13 news: The Governor of the Bank of Korea stated that whether the AI boom will push up the neutral rate of interest remains to be seen. The growth from AI has outweighed the drag from the oil shock, but risks still remain. The South Korean economy is at the intersection of an AI boom and an energy shock. There is currently no need to cut interest rates. The South Korean won is expected to appreciate further. The inflation rate is projected to be 2.2% this year and to decline next year.