Article
【Bank of Korea Governor: The primary focus of interest-rate policy is the inflation trend】
Bank of Korea Governor Shin Hyun-song 12 stated on the day that “the most important thing” in monetary policy decisions is the inflation trend. That day, at a National Assembly audit meeting of the Strategy and Finance Committee held at the Bank of Korea in Jung District, Seoul, Shin Hyun-song made the above response to a question on “whether the Bank of Korea would October or November raise interest rates again.” Shin Hyun-song said that the Bank of Korea is particularly concerned that inflationary pressures could have a greater impact on low-income groups and economically vulnerable segments. He said: “One point we particularly emphasize is that, because of inflation, low-income and vulnerable groups suffer the greatest harm.” He also noted that vulnerable borrowers (disadvantaged borrowing groups) affected by high interest rates may feel pressure from the central bank’s monetary policy. Market interpretation suggests that the Bank of Korea will still seek a balance between controlling inflation and easing the pressure that high interest rates place on households and businesses when considering the interest-rate path.