Bank of Korea to increase interest more… “Currency policy relaxing regulation condition to be built”
Lee Mi-gyung | lmj0919@ | 2017-11-10 12:51:01
The Bank of Korea has officially mentioned the possibility of raising the benchmark interest rate, saying conditions are being made to adjust the degree of monetary policy easing. After the central bank froze the October rate, the central bank sent a signal to the central bank to raise interest rates.
The Bank of Korea said in its monetary policy report submitted to the National Assembly on November 9, "There is a growing possibility of adjusting the degree of monetary policy easing that has been responding to low growth and low prices."
"The Korean economy is expected to show a growth rate of potential growth rate, and inflation is expected to show an upward trend," the BOK said. "We plan to check whether the current economic improvement trend will continue in the future."
The Bank of Korea plans to continue its policy efforts to stabilize the financial market in light of the high uncertainties surrounding the domestic and global economy.
The Bank of Korea emphasized that "We will strengthen our monetary policy communication so that transparency and predictability of monetary policy can be enhanced. We will maintain consistency in accordance with the general principles of monetary policy management."
The Bank of Korea also expects inflationary pressure on the demand side to be insignificant, as the core inflation rate has remained at around 1% for the time being.
The GDP gap, which had been negative since 2H12, will turn positive in 2H08, especially as growth continues to recover.
The Bank of Korea said, "We will continue to monitor and analyze changes in inflation trends in accordance with the sustainability of growth in major countries and Korea, and the speed with which idle production capacity is eliminated."
The Bank of Korea predicted that households` lending growth at financial institutions will shrink. The measures include designation of dumping areas and speculative superheating districts, strengthening housing finance regulations, and strengthening multi-lender transfer income tax, the BOK said.
Besides, the Bank of Korea (BOK) expects the growth rate of household loans in financial institutions to gradually decrease as regulations under the 8.2 measures are implemented in sequence and the effects of the household debts comprehensive measures announced on March 24 are added up.
However, the Bank of Korea said, "As household loan growth is not likely to slow down in the short term due to demand for funds from residential and pre-sale housing loans, handling of approved group loans, and competition before the enforcement of regulations related to loans, it is necessary to closely monitor household loan trends.”
By Lee Mi-gyung lmj0919@dt.co.kr
[ copyright ⓒ The Digitaltimes ]
The Bank of Korea said in its monetary policy report submitted to the National Assembly on November 9, "There is a growing possibility of adjusting the degree of monetary policy easing that has been responding to low growth and low prices."
"The Korean economy is expected to show a growth rate of potential growth rate, and inflation is expected to show an upward trend," the BOK said. "We plan to check whether the current economic improvement trend will continue in the future."
The Bank of Korea plans to continue its policy efforts to stabilize the financial market in light of the high uncertainties surrounding the domestic and global economy.
The Bank of Korea emphasized that "We will strengthen our monetary policy communication so that transparency and predictability of monetary policy can be enhanced. We will maintain consistency in accordance with the general principles of monetary policy management."
The Bank of Korea also expects inflationary pressure on the demand side to be insignificant, as the core inflation rate has remained at around 1% for the time being.
The GDP gap, which had been negative since 2H12, will turn positive in 2H08, especially as growth continues to recover.
The Bank of Korea said, "We will continue to monitor and analyze changes in inflation trends in accordance with the sustainability of growth in major countries and Korea, and the speed with which idle production capacity is eliminated."
The Bank of Korea predicted that households` lending growth at financial institutions will shrink. The measures include designation of dumping areas and speculative superheating districts, strengthening housing finance regulations, and strengthening multi-lender transfer income tax, the BOK said.
Besides, the Bank of Korea (BOK) expects the growth rate of household loans in financial institutions to gradually decrease as regulations under the 8.2 measures are implemented in sequence and the effects of the household debts comprehensive measures announced on March 24 are added up.
However, the Bank of Korea said, "As household loan growth is not likely to slow down in the short term due to demand for funds from residential and pre-sale housing loans, handling of approved group loans, and competition before the enforcement of regulations related to loans, it is necessary to closely monitor household loan trends.”
By Lee Mi-gyung lmj0919@dt.co.kr