Senior Deputy Governor Ryoo Sang-dai of the Bank of Korea stated on Monday that it is time for the central bank to consider raising interest rates, as price increases are exceeding expectations.

Ryoo made the remarks during an interview with reporters in Uzbekistan, where he is attending the annual meeting of the Asian Development Bank.

He indicated that, despite ongoing geopolitical risks in the Middle East, the South Korean economy has shown resilience, and inflation growth may outpace earlier projections. Therefore, the focus should shift toward a potential interest rate hike.

The Bank of Korea decided to keep interest rates unchanged in April due to concerns that conflict involving Iran could slow economic growth.

Ryoo noted that it is "possible" for the central bank to signal the need for an interest rate increase later this year or beyond during its upcoming rate decision meeting on May 28.

He also mentioned that, considering economic fundamentals such as the current account surplus, price levels, and various growth indicators, it is an "undeniable fact" that the US dollar to Korean won exchange rate remains high compared to historical levels.