이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Bank of Korea keeps rate unchanged for March, pressure mounting for a cut
- Collected
- 2016.03.11
- Distributed
- 2016.03.14
- Source
- Go Direct
The Monetary Policy Committee presided by Governor Lee Ju-yeol on Thursday decided against a rate cut to stabilize the financial market amid volatilities in China and save ammunitions against further instabilities.
There had been expectations for the local central bank to push the benchmark lower after its Japanese counterpart joined European nations to send its interest rate to the negative territory. But the BOK feared that foreign capital flight could be accelerated if Korean rates turn lower.
The prolonged loose monetary policy and cheap borrowing rates also have hindered much-needed corporate restructuring. The snowballing household debt that tops 1,200 trillion won ($995 billion) also restrained the bank.
But the central bank inevitably would be pressured to take an action to stimulate the economy with exports in the longest-ever losing streak, as well as industrial activity, corporate investment and private spending all sagging. Ha Sung-geun, a member of the policy committee, in last month’s meeting recommended a cut by another 25 basis points to help jump-start the economy in sync with fiscal expansion.
With the market now waging a bet on a cut in the second quarter, the BOK may have to act if economic data do not improve.
By Lee Sang-duk
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]