"Economic growth and inflation will have to be considered, as ​well as the aspect of financial stability, while there could ​also be policy effects as well as side effects ⁠from raising interest rates," Senior Deputy Governor Kwon Min-soo told reporters ​on the first day of his three-year term.

"It is time to ​make policy decisions very carefully, and flexibly if needed," he said.

Earlier on Friday, Kwon said economic growth was improving more strongly than expected, while inflation ​was exceeding the bank's target and financial stability risks remained. He ​also noted foreign exchange volatility and geopolitical risks as policy factors.

Last month, the ‌Bank ⁠of Korea raised interest rates for the first time in 3-1/2 years and flagged more to come, as brisk growth in Asia's fourth-largest economy fanned inflation risks. The bank next meets on August 27.

Kwon, ​who will also ​be a ⁠member of the central bank's seven-seat monetary policy board, said policy decisions would be made based on ​economic conditions and data, when asked if he ​would define ⁠himself as a hawk or a dove.

On the won , which has strengthened sharply since last month to trade around 11-month highs on Friday, ⁠Kwon ​said it would still be a ​policy variable to consider because there were various external factors, although economic fundamentals suggest it ​would strengthen further.