Will next BOK chief hike interest rates to counter surging oil prices, weakening won?

Markets are closely watching whether Bank of Korea (BOK) governor nominee Shin Hyun-song will raise interest rates as the economy faces mounting pressure from rising oil prices and a weakening won, economists and analysts said Tuesday. Shin, widely seen as a pragmatic "hawk," is expected to lean toward rate hikes to contain inflationary pressure, though not immediately after taking office in April, they said. "Shin is considered hawkish, but appears cautious about preemptive tightening. Early in his term, he will likely assess external conditions such as the Middle East situation and oil prices before making decisions," said Joo Won, head of research at the Hyundai Research Institute. "It's clear the rate-cut cycle is over. While a hike will likely come at some point, the timing will be a key consideration for the incoming BOK chief," Joo added. The analyst also said a rate hike as early as May appears unlikely, as it could undermine the government's planned 25 trillion won ($16.6 billion) supplementary budget aimed at cushioning the economic fallout from the Iran conflict. Kim Jin-wook,

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