"Unless there is an extraordinary ​shock or an extraordinary factor, the possibility of an additional rate hike is ‌high," Bank of Korea Senior Deputy Governor Ryoo Sang-dai said at a press conference as his three-year term comes to end on August 20.

"Because interest-rate policy is conducted ex ante and pre-emptively, there will be ​an additional hike as we look at the growth and inflation outlook," said ​Ryoo, a member of the central bank's seven-seat monetary policy board.

Last month, ⁠the BOK 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, with some ​board members suggesting preemptive action.

The central bank is more concerned about demand-driven inflation than any supply shock stemming from the Middle East conflict, Ryoo said, as the domestic economic recovery is expected to generate gradual ​and persistent upward price pressure.

Ryoo said he would look to export and credit card spending ​data to help shape the policy decision if he were to attend the August 27 meeting. Recent ‌gains ⁠in the currency and stock market volatility might warrant closer discussion by board members, but are not significant drivers of policy decisions, he added.

Last week, data showed inflation softened to a three-month low in July, undershooting market expectations on a fall in oil prices, though policymakers remained wary of ​upward pressures and markets haven't ​ruled out a ⁠possible back-to-back rate hike this month.

Fuelled by soaring chip exports amid the global AI boom, the trade-reliant economy outpaced forecasts in the second quarter, ​building on its strongest quarterly growth in almost six years in ​the first.

Ryoo stopped ⁠short of signalling the pace or extent of any further rate increases.

With the won trading near 10-month highs after a sharp rally last month, Ryoo said exchange rates in the 1,400 won-per-dollar ⁠range ​were still "very high" and continued to exert significant upward pressure ​on inflation.

He said the dollar-won rate was unlikely to fall rapidly because some temporary factors were still at play, though ​the broader trend pointed to further declines.