Bank of Korea Senior Deputy Gov. Ryoo Sang-dai said the central bank needs to maintain a rate-hike stance because stronger second-quarter growth, sticky July inflation and Middle East-related cost pressures could keep price gains elevated. The BOK raised its benchmark interest rate by 0.25 percentage point to 2.75% on July 16, and Ryoo said lessons from earlier inflation episodes argue for a pre-emptive response if inflation expectations do not stay anchored near the 2% target. He said improving terms of trade and a growing current account surplus could lift consumption and investment, adding to demand-side pressure, while the won's recent stabilization in the 1,400 range and stock-market volatility are not decisive for policy. Ryoo added that higher rates can also help curb debt-financed risk-taking and other financial imbalances, though he declined to signal when or by how much the BOK might tighten again.