Bank of Korea’s decision to keep interest rates unchanged at 1.5 percent in October was not unanimous, Governor Lee Ju-yeol told a news conference after the meeting on Thursday and added further that the widening yield differential with the US is not the cause of financial instability.
Key points (Source: Reuters)
- Sees 2018 growth at 2.7 pct vs 2.9 pct seen previously.
- Sees 2019 growth at 2.7 pct vs 2.8 pct seen previously.
- Sees 2018 inflation at 1.6 pct vs 1.6 pct seen previously.
- Thursday’s interest rate decision was not unanimous.
- Board member lee IL-houng was dissenter to Thursday’s rate decision.
- Board member Koh Seung-beam was dissenter to Thursday’s rate decision.
- Yield differential with US not cause of financial instability.
- Financial imbalances cannot be resolved by monetary policies alone.
- Major outflow from local bond market unlikely.
- New growth outlook of 2.7 pct for this yr factored in Q2 growth.
- Household debt growth should be lowered.
- It’s time to pay more attention to financial stability.
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