(EDITORIAL from The Korea Herald on June 15) (opens original article in a new tab)

Financial markets reacted to potential peace talks between the US, Israel, and Iran, but central banks are preparing for tighter monetary policies due to ongoing inflation risks and economic instability. South Korea's inflation has risen, prompting concerns about household debt and the need for careful economic management.

• Financial markets reacted positively to potential US-Israel-Iran peace talks, with global stocks and South Korea's Kospi rising.
• Central banks, including the Bank of Korea and European Central Bank, are considering tighter monetary policies due to inflation risks and economic instability.
• Inflation in South Korea rose above 3% in May, prompting concerns about rising import costs and household debt vulnerabilities.
• Policymakers face a balancing act between controlling inflation and avoiding financial stress for vulnerable economic groups.