Re-appointed Bank of Korea governor Lee Ju-yeol speaks in a parliamentary hearing
- Keeping policy accommodative doesn’t mean that holding rates where they are now
- Policy direction is for rate hikes if the economy continues to grow based on current trend
raised rates back in November – the first time in six years – but has stood pat since then. And they are not expected to move at all this year, and I would be surprised if they did.
Inflation remains subdued and signs are still not there yet that a reversal in the downtrend will be sustained, and the central bank already has had a tough time in the past year due to the strength in the Korean won. No hurry, really.