Kwon Min-soo, who began a three-year term as Senior Deputy Governor of the Bank of Korea, said monetary policy decisions should be made very carefully and flexibly when necessary. Ahead of his first Monetary Policy Board meeting on Aug. 27, Kwon said stronger-than-expected growth, inflation above the central bank's target, financial stability risks, foreign-exchange volatility and geopolitical risks would all inform decisions. The BOK raised its base rate by 0.25 percentage point to 2.75% from 2.50% last month, its first increase in 3-1/2 years, as stronger growth increased inflation risks. Kwon said he would make decisions based on economic conditions and data rather than identify himself as a hawk or dove. The won, which has strengthened sharply to around an 11-month high, remains a policy variable, although economic fundamentals point to further gains. Kwon also said many obstacles to South Korea's inclusion in the Morgan Stanley Capital International developed-market index had been resolved and urged progress in the second half or early next year.