South Korea’s remarkable economic boom can run for a while yet, if the central bank has any say in the matter. Officials do have their work cut out managing the spillovers, but restraint may prove to be the most courageous course of action.

Considering the rapid clip of expansion and the pickup in inflation, the monetary authority has been pretty restrained. The Bank of Korea’s new chief isn’t panicking. He seems determined to let the growth spurt find a natural ceiling and then deflate — gradually. This is wise, given that it’s driven as much by overseas demand as developments at home. There’s huge demand for the AI-related materials that Korean companies supply to the world.

The BOK does have agency: It can get in the way, slow things down and make life harder for local borrowers and consumers. Officials need to wrestle inflation down toward their target. But they are signaling no rush — and showing welcome signs of humility.

After two interest-rate hikes, the cycle might be just about done. The bank’s version of the Federal Reserve’s dot-plot suggests one more quarter-point increase in the main rate to 3.25% over the next six months. This is a relatively modest degree of........

© The Japan Times