Additional impressions… “It is not advisable to consider the political schedule”
[한국은행 제공]
(Seoul = Yonhap News) Reporter Kim Yu-ah and Oh Joo-hyeon = Bank of Korea Governor Lee Ju-yeol suggested an additional increase on the 25th, saying that the base rate, which was raised to 1.00% a year, is still accommodating and will not hurt the economic recovery.
Governor Lee made this statement at an online press conference held immediately after the Monetary Policy Committee (Monetary Policy Committee) on the same day.
At the Monetary Policy Direction Meeting held in the morning of the same day, the BOK Monetary Policy Committee raised the base rate by 0.25 percentage points from 0.75% per annum to 1.00%.
The base rate was lowered to 0.75% per annum on March 16, last year, and rose to the 1% level in 20 months after entering the 0% range.
Governor Lee said, “The base rate has reached 1.00% with this increase, but it is still at an accommodative level.” said
Based on this, the reason was that the real base rate remained negative (-), lower than the neutral rate, and the liquidity was still abundant, such as the M2 indicator of the money supply (M2) maintained at the double-digit level.
“Even after raising the base rate in August and announcing a further increase, the domestic economy continues to recover, and private consumption is more affected by the government’s quarantine switch than the rate hike,” Lee stressed. did.
This suggests that there may be a further increase in the base rate at the MPC meeting next year.
[정연주 제작] illustration
He also expressed the opinion that the key rate hike will not hinder the economic recovery.
“Considering the current financial and economic conditions, I do not think the economic recovery will be significantly constrained by this increase,” said Governor Lee.
“I expect other major central banks to raise interest rates in the future as well,” he said.
Regarding the market prospect of an additional rate hike in January next year, he said, “I think it is of course necessary to normalize the excessively lowered base rate in line with the improvement of economic conditions. “At each meeting, we will take a comprehensive view of all economic indicators and financial stability,” he said.
Regarding the observation that an additional rate hike would be difficult ahead of the presidential election day on March 9 next year, he said, “Money bank members basically judge by looking at the financial and economic situation.” There is a connection, but it is not advisable to consider it politically (the timing of the base rate hike),” he said.
Governor Lee also stressed that the normalization of monetary policy will help alleviate financial imbalances such as the recent increase in household debt.
He said, “Financial imbalances such as a large increase in household loans, rising housing prices, and economic actors’ preference for risk, especially asset investment through excessive borrowing, have accumulated for a long time, and supervisory authorities have strengthened macroprudential policies,” he said. I think some of this is happening,” he explained.
“The macroprudential policy needs to be consistently pursued in the future,” he said.
kua@yna.co.kr, viva5@yna.co.kr
<저작권자(c) 연합뉴스,
Unauthorized reproduction-redistribution prohibited>
2021/11/25 12:28 Send
