Bank of Korea Governor Shin Hyun-song gavels open the Monetary Policy Board meeting at the Bank of Korea headquarters in Jung-gu, Seoul, on Thursday. [Yonhap]
Bank of Korea Governor Shin Hyun-song gavels open the Monetary Policy Board meeting at the Bank of Korea headquarters in Jung-gu, Seoul, on Thursday. [Yonhap]

Bank of Korea Governor Shin Hyun-song said Thursday that a dissenting vote by Monetary Policy Board member Hwang Geon-il, who favored holding the benchmark interest rate steady rather than raising it, amounted to "simply a tactical difference."

Speaking at a monetary policy press briefing that morning, Shin said the board "agreed on the big picture and had an in-depth discussion on how best to proceed," adding that the divergence should be seen as a difference in tactics rather than in direction.

Shin also said the Bank of Korea had acted ahead of what markets had anticipated. "My understanding is that markets were expecting a hike around August or October, so by moving early we reduced costs," he said. He noted that the exchange rate had moved further in response and that government bond yields had edged down despite the rate increase. "I believe markets reacted positively to the Bank of Korea," he added.


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