President Lee Ju-yeol of The Bank of Korea predicted that South Korea’s economy will somewhat improve if there is supplementary budget of $8.83 billion (10 trillion KRW).
However, he firmly believes that it is not time for lowering interest rate that was recommended by IMF (International Monetary Fund).
“$8.83 billion supplementary budget is about 0.5% of our GDP (Gross Domestic Product) and it will somewhat improve our economic growth rate.” said President Lee regarding a question from Park Myung-jae, who is a member of Liberty Korea Party, during a business report of Strategy and Finance Committee.
Regarding an issue on IMF recommending South Korean Government to operate moderate monetary policies and to draw up a supplementary budget, President Lee responded by saying that IMF believes that there are too many downside risks.
Regarding a question about possible time for lowering interest rate, President Lee responded by saying that The Bank of Korea is still operating moderate monetary policies rather than providing a clear answer.
Park Myung-jae insisted that The Bank of Korea must be more critical of South Korea’s economy while mentioning a word ‘The Bank of Korea Temple’, which is a word that was brought by a member of a party during last year’s national inspection and it refers to the Bank of Korea being secluded like a Buddhist temple.
“It is true that our economy is in difficult situations.” said President Lee regarding a question from Park Myung-jae on how President Lee views President Moon Jae-in’s statement that South Korea’s economy has been improved in many aspects. “It seems that President Moon emphasized positive aspects.”
Some of The Bank of Korea’s major tasks for 2019 are financial intermediation loan support system, issue of monetary financial policy report four times annually, issue of inflation targeting inspection report two times annually and a press conference for inflation targeting, joint mobile direct payment service for banking industry, change to base year of statistics on national accounts from 2010 to 2015, and breakdown of stabilization of foreign exchange markets.
President Lee marked improved communication with markets and transparent policies with side dots. Monetary financial policy report will be issued four times annually when it was two times in the past. Press conference for inflation targeting will be held for the first time starting from this year. Breakdown of stabilization of foreign exchange markets will be announced through The Bank of Korea’s homepage at 4 P.M. on the 29th.
Staff Reporter Ham, Jihyun | goham@etnews.com