(Seoul = Yonhap Infomax) Reporter Han Jong-hwa = Bank of Korea Governor Lee Chang-yong emphasized that the Bank of Korea’s 2% inflation target should not be changed now.
Governor Lee said at a meeting of the National Assembly’s Planning and Finance Committee on the 21st that he did not agree in the short term with Justice Party lawmaker Jang Hye-young’s question regarding the need to raise the inflation target, saying, “The reason why we shouldn’t change the 2% target now is that it has an effect on inflation expectations, but it also affects Korea’s inflation expectations.” Because when you change the 10,000 won, the exchange rate will change drastically,” he said.
In response to a question from Democratic Party lawmaker Yoo Dong-soo, who asked regarding the possibility of achieving the 3.6% inflation forecast this year, Governor Lee said, “Many US news has a bad side in terms of prices,” but added, “Because the US economy is that strong, it also has a positive effect on exports.” “he said.
“When looking at the overall effect, there is a possibility that the price pattern itself will remain the same,” he said.
Lee Soo-jin, a member of the Democratic Party of Korea, asked regarding the prospect of improving the trade deficit following China’s reopening.
Governor Lee said, “There is a lot of uncertainty.” said.
Democratic Party lawmaker Shin Dong-geun asked if the Bank of Korea might further extend the measures to stabilize the short-term financial market, which it extended until April this year.
Governor Lee said, “The liquidity measures were taken in November of last year because there was a crisis not only in the real estate market but also in the entire financial market.
“The Monetary Policy Committee members will make appropriate decisions depending on how they view the future crisis,” he added.
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