Bank of Korea(BOK) Governor Lee Ju-yeol says that he will carefully decide whether or not to adjust the bank’s monetary easing in the second half of the year.
In a speech marking the 68th anniversary of the central bank’s founding on Tuesday, Lee said the BOK will closely monitor growth and inflationary trends as well as changes in major countries’ monetary policies and the impact such changes could have on the stability of the domestic financial market.
While predicting that the South Korean economy will remain on a solid growth track, Lee said there is a need to maintain the current monetary easing policy for the time being given that inflationary pressure in terms of demand is not yet significant.
Noting that financial imbalances could grow in the process, he added that it is also necessary to strengthen the capacity to adjust monetary policies in order to appropriately respond to economic changes in the long-run.
An excessively-low interest rate leaves little room for the central bank to adjust its policy in case of an emergency, such as a financial crisis.
[Photo : KBS News]