Defying some expectations, the Bank of Korea Monetary Policy Committee froze the country’s policy rate at 1.75% on Friday.
BOK Governor Lee Ju-yeol mentioned that some had raised the possibility of a rate cut due to the surprise negative growth the economy suffered in the first quarter amid the intensifying trade dispute between the US and China. However, the prevailing view of the board was that a rate cut is not to come anytime soon.
In April, the Monetary Policy Committee unanimously decided to maintain the policy rate, but at this month’s meeting, one member called for a rate cut. At a press conference, Lee shot that down. “The minority opinion is just a minority opinion, and it is too much to see it as a signal of monetary policy,” he said.
A frothy real estate market and heavy household debt are two key factors obviating a rate cut.
A rise in housing prices has calmed down amid rigid government measures to curb demand, but expectations of a rebound in real estate prices are spreading. Lee noted that household debt growth has slowed, but its still “quite excessive.”
He went on to say that he expected the economy to recover on the back of improving exports and investment, and an expansionary fiscal policy.
Asked if there is a possibility of lowering the central bank’s GDP growth forecast for this year, which currently stands at 2.5 percent, Lee said only, “The economy is expected to improve in the second half.”
However, he added that the BOK would be monitoring external conditions.
Hello my family member! I want to say that this post is amazing, nice written and include almost all important infos. I?¦d like to see more posts like this .
Good post. I be taught one thing more challenging on totally different blogs everyday. It is going to always be stimulating to learn content from different writers and apply just a little one thing from their store. I’d choose to make use of some with the content material on my weblog whether you don’t mind. Natually I’ll give you a link on your internet blog. Thanks for sharing.
I’d have to verify with you here. Which is not something I often do! I get pleasure from studying a post that will make folks think. Also, thanks for allowing me to remark!
Thank you for the good writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! By the way, how could we communicate?
Well I sincerely liked studying it. This information offered by you is very practical for accurate planning.
Very interesting subject , regards for posting.
Well I truly liked studying it. This subject procured by you is very constructive for proper planning.
I visited a lot of website but I think this one has something extra in it in it
Sweet blog! I found it while surfing around on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you
Howdy! Do you use Twitter? I’d like to follow you if that would be okay. I’m undoubtedly enjoying your blog and look forward to new posts.
Together with every little thing which appears to be developing inside this specific area, a significant percentage of opinions are relatively stimulating. On the other hand, I appologize, but I do not subscribe to your whole suggestion, all be it exciting none the less. It seems to everybody that your opinions are actually not completely justified and in fact you are generally yourself not totally confident of the assertion. In any case I did appreciate reading through it.
Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. It extremely helps make reading your blog significantly easier.
Thanks for another fantastic post. Where else could anybody get that kind of info in such a perfect way of writing? I have a presentation next week, and I am on the look for such info.
wonderful issues altogether, you simply won a new reader. What may you suggest about your publish that you made some days ago? Any positive?
Respect to website author, some fantastic selective information.
Wonderful paintings! That is the kind of info that should be shared around the internet. Shame on the search engines for not positioning this post higher! Come on over and talk over with my site . Thanks =)
Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.
Interesting blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple tweeks would really make my blog stand out. Please let me know where you got your design. Thanks
Hello, you used to write fantastic, but the last several posts have been kinda boring… I miss your super writings. Past several posts are just a little bit out of track! come on!
It¦s truly a great and useful piece of information. I¦m glad that you simply shared this useful info with us. Please keep us informed like this. Thanks for sharing.