BOK Governor says expansionary policy needed until S. Korean economy recovers from COVID-19
- 4 years ago
이주열 "韓경제 회복될 때까지 금리인하 기조 유지"
South Korea's central bank chief has vowed to keep pumping stimulus into the COVID-19-hit, trade-reliant economy until some strong signs of recovery are on the horizon.
Lee Ju-yeol's pledge to keep pushing stimulus did however come with a warning.
Yoon Jung-min reports.
Bank of Korea governor Lee Ju-yeol has signaled that the central bank will maintain its current monetary policy approach until the South Korean economy starts recovering from the impact of COVID-19.
Marking the 70th anniversary of the establishment of the Bank of Korea on Friday,... Lee touched upon the need for an expansionary approach.
"It seems we need an expansionary monetary policy until our economy recovers from the coronavirus crisis. To achieve a stable financial market and credit flow, we should use other policies as well as the rate policy, if needed."
The chief also said the coronavirus challenge made the bank think about its fundamental role in the economy.
He said the health crisis has brought the central bank a heavier responsibility than at any other time,... because of its impact on the economy right now as well as the changes it will bring to the economy after the pandemic.
Lee said the authorities are currently discussing the extent to which the bank's role can be expanded,... saying some people view the central bank as a 'crisis fighter'.
The governor added that the bank will work on research and development for a post-coronavirus inflation targeting system,... as well as a central bank digital currency.
Lee said the health crisis will bring changes to the future economic structure,... including digitalization.
He warned against possible economic polarization caused by the digital economy,... emphasizing the need to prepare for a post-pandemic era led by the private sector.
Yoon Jung-min, Arirang News.
South Korea's central bank chief has vowed to keep pumping stimulus into the COVID-19-hit, trade-reliant economy until some strong signs of recovery are on the horizon.
Lee Ju-yeol's pledge to keep pushing stimulus did however come with a warning.
Yoon Jung-min reports.
Bank of Korea governor Lee Ju-yeol has signaled that the central bank will maintain its current monetary policy approach until the South Korean economy starts recovering from the impact of COVID-19.
Marking the 70th anniversary of the establishment of the Bank of Korea on Friday,... Lee touched upon the need for an expansionary approach.
"It seems we need an expansionary monetary policy until our economy recovers from the coronavirus crisis. To achieve a stable financial market and credit flow, we should use other policies as well as the rate policy, if needed."
The chief also said the coronavirus challenge made the bank think about its fundamental role in the economy.
He said the health crisis has brought the central bank a heavier responsibility than at any other time,... because of its impact on the economy right now as well as the changes it will bring to the economy after the pandemic.
Lee said the authorities are currently discussing the extent to which the bank's role can be expanded,... saying some people view the central bank as a 'crisis fighter'.
The governor added that the bank will work on research and development for a post-coronavirus inflation targeting system,... as well as a central bank digital currency.
Lee said the health crisis will bring changes to the future economic structure,... including digitalization.
He warned against possible economic polarization caused by the digital economy,... emphasizing the need to prepare for a post-pandemic era led by the private sector.
Yoon Jung-min, Arirang News.