BOK Governor says S. Korea may not achieve over 1% growth this year; Key rate unchanged at 0.75% in April
- 4 years ago
이주열 "올해 1%대 성장 쉽지 않다"...한국은행, 4월 기준금리 0.75%로 동결
Following an aggressive rate cut last month amid the COVID-19 outbreak,... the Bank of Korea left its benchmark interest rate steady for April.
Speaking to reporters, BOK Governor Lee Ju-yeol suggested that Korea might see growth this year fall below 1 percent.
Yoon Jung-min reports.
At the monetary policy board meeting for April on Thursday,... the Bank of Korea kept the key interest rate unchanged at point-75 percent,... apparently to "wait and see" the effects of the rate cut in March.
The key interest rate remains the lowest-ever as of April,... amid coronavirus uncertainties hitting both the local and global economy.
The central bank had lowered the rate 50 basis points in an emergency meeting in March,... to help the local economy get through the COVID-19 outbreak.
The central bank governor said he expects South Korea's growth for this year to suffer,... though the economy may slowly improve in the third quarter.
"As there is a lot of uncertainty, we see it's not easy to achieve above the 1-percent goal. But it largely depends on how the COVID-19 pandemic unfolds. Many predictions show a growth rate of between 0 and 1 percent. But if the situation gets worse, of course it will be different."
The bank also expects consumer price growth to remain below its earlier projection of 1 percent.
South Korean financial markets have seen fluctuations during March,... as global stock markets have plummeted.
The Bank of Korea also unveiled additional measures to boost market liquidity on Monday.
It said it will expand the scope of bonds it can buy up for the first time since the global financial crisis over a decade ago.
The bank said it is adding three more bonds issued by special banks.
Those include industrial financial debentures, and bonds issued by the Industrial Bank of Korea and the Export-Import Bank of Korea.
It also includes mortgage backed securities issued by the Korea Housing Finance Corporation.
And the BOK will expand bonds eligible for repurchase agreements.
"State-run banks usually provide liquidity to companies through company bonds,... while the housing finance corporation often provides liquidity for households. The BOK's decision means it has prepared channels to provide liquidity in case of a credit crunch."
"The Bank of Korea added it will conduct monetary policy in an accommodative manner to fend off downside risks for the local economy and financial markets amid the COVID-19 outbreak.
Yoon Jung-min, Arirang News."
Following an aggressive rate cut last month amid the COVID-19 outbreak,... the Bank of Korea left its benchmark interest rate steady for April.
Speaking to reporters, BOK Governor Lee Ju-yeol suggested that Korea might see growth this year fall below 1 percent.
Yoon Jung-min reports.
At the monetary policy board meeting for April on Thursday,... the Bank of Korea kept the key interest rate unchanged at point-75 percent,... apparently to "wait and see" the effects of the rate cut in March.
The key interest rate remains the lowest-ever as of April,... amid coronavirus uncertainties hitting both the local and global economy.
The central bank had lowered the rate 50 basis points in an emergency meeting in March,... to help the local economy get through the COVID-19 outbreak.
The central bank governor said he expects South Korea's growth for this year to suffer,... though the economy may slowly improve in the third quarter.
"As there is a lot of uncertainty, we see it's not easy to achieve above the 1-percent goal. But it largely depends on how the COVID-19 pandemic unfolds. Many predictions show a growth rate of between 0 and 1 percent. But if the situation gets worse, of course it will be different."
The bank also expects consumer price growth to remain below its earlier projection of 1 percent.
South Korean financial markets have seen fluctuations during March,... as global stock markets have plummeted.
The Bank of Korea also unveiled additional measures to boost market liquidity on Monday.
It said it will expand the scope of bonds it can buy up for the first time since the global financial crisis over a decade ago.
The bank said it is adding three more bonds issued by special banks.
Those include industrial financial debentures, and bonds issued by the Industrial Bank of Korea and the Export-Import Bank of Korea.
It also includes mortgage backed securities issued by the Korea Housing Finance Corporation.
And the BOK will expand bonds eligible for repurchase agreements.
"State-run banks usually provide liquidity to companies through company bonds,... while the housing finance corporation often provides liquidity for households. The BOK's decision means it has prepared channels to provide liquidity in case of a credit crunch."
"The Bank of Korea added it will conduct monetary policy in an accommodative manner to fend off downside risks for the local economy and financial markets amid the COVID-19 outbreak.
Yoon Jung-min, Arirang News."