Logo

Korea's central bank governor expects inflation to ease, future policies based on inflation.

TraderKnows
TraderKnows
07-09

At a congressional meeting this Tuesday, the Governor of the Bank of Korea stated that inflation has eased and is expected to continue this trend.

Governor of the Bank of Korea, Lee Chang-yong, stated in a parliamentary meeting on Tuesday that future monetary policy actions will focus on balancing recent inflation trends, economic growth, and financial stability. He noted that while recent inflation has eased and is expected to continue, the rapid growth in household debt and increased volatility in the foreign exchange market require special attention.

Lee Chang-yong said, "We are seeing some positive signs of easing inflation, but at the same time, the growth of household debt and increased volatility in the foreign exchange market present new challenges for us." He emphasized that the Bank of Korea will continue to closely monitor these dynamics and consider these factors comprehensively when formulating monetary policy to ensure economic stability and sustainable growth.

According to a Reuters survey, the Bank of Korea is expected to maintain its policy rate at a 15-year high of 3.50% at its meeting this Thursday. Analysts generally believe that the central bank will keep this rate level unchanged until the third quarter of 2024, then begin cutting rates in the fourth quarter, with an anticipated reduction of 25 basis points. This adjustment may coincide with the expected timing of policy easing by the US Federal Reserve.

This policy decision reflects the Bank of Korea's cautious stance in the face of domestic and international economic pressures. Despite the easing of inflationary pressures, the uncertainty of the global economic environment and the potential risks to the domestic economy prompt the central bank to remain highly vigilant. Particularly the issue of household debt, which, with rising interest rates, increases the burden on households and may have a negative impact on the economy. Meanwhile, volatility in the foreign exchange market could affect South Korea's imports and exports, necessitating measures to stabilize market sentiment.

Additionally, Lee Chang-yong mentioned that the Bank of Korea will continue to closely cooperate with the government and other financial institutions to ensure coordinated measures in addressing economic challenges. He stated, "We must maintain policy consistency and coherence to minimize the impact of economic fluctuations on people's lives."

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Inflation

Inflation refers to the phenomenon where the purchasing power of a country's (or region's) currency decreases, leading to a general rise in the prices of goods and services. It is reflected in the fact that, over a certain period, the same amount of money can only buy fewer goods and services.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1