It is time for South Korea’s central bank to “stop lowering rates and think about raising them,” its Deputy Governor Yoo Sang-dae said speaking to reporters on the sidelines of the Asian Development Bank annual meeting in Samarkand, Uzbekistan. Yoo cited signs that growth may not fall far below the Bank of Korea’s (BOK) February forecast of 2%, while inflation could rise above its 2.2% projection after the Iran war started.

Markets moved immediately after Yoo’s remarks. ROK government bond yields rose with investors expecting higher interest rates. The 10-year ROK government bond yield climbedfrom the low 3.9% range