Bank of Korea deputy chief says monetary policy to be made 'very carefully'
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
SEOUL, Aug 21 : The new deputy chief of the Bank of Korea said on Friday that monetary policy decisions would be made 'very carefully' and flexibly if needed, taking into account various policy factors including the side effects of rate hikes.
"Economic growth and inflation will have to be considered, as well as the aspect of financial stability, while there could also be policy effects as well as side effects from raising interest rates," Senior Deputy Governor Kwon Min-soo told reporters on the first day of his three-year term.
"It is time to make policy decisions very carefully, and flexibly if needed," he said.
Earlier on Friday, Kwon said economic growth was improving more strongly than expected, while inflation was exceeding the bank's target and financial stability risks remained. He also noted foreign exchange volatility and geopolitical risks as policy factors.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Last month, the Bank of Korea raised interest rates for the first time in 3-1/2 years and flagged more to come, as brisk growth in Asia's fourth-largest economy fanned inflation risks. The bank next meets on August 27.
Kwon, who will also be a member of the central bank's seven-seat monetary policy board, said policy decisions would be made based on economic conditions and data, when asked if he would define himself as a hawk or a dove.
On the won, which has strengthened sharply since last month to trade around 11-month highs on Friday, Kwon said it would still be a policy variable to consider because there were various external factors, although economic fundamentals suggest it would strengthen further.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app