Bank of Korea Governor Lee Chang-yong hinted at the possibility of a so-called 'big step' of raising interest rates by 0.5 percentage points at a time.
The position has changed somewhat from the last personnel hearing, but reporter Lim Tae-woo pointed out what the background was.
<Reporter> Lee Chang-
yong, governor of the Bank of Korea, denied the possibility of a big step at the personnel hearing a month ago.
[Lee Chang-yong/Governor of the Bank of Korea (last month 19th): (Are you opposing the big step in regards to interest rate hike?) I don’t think there is any need to do it yet.]
But yesterday (16th), when I first met with Deputy Prime Minister Choo Kyung-ho, I entered changed the .
[Lee Chang-yong/President of the Bank of Korea: I am not at a stage where I can say whether such a big step can be completely excluded from now on.]
“Until last month, there was no need for a big step. It is time to look back and judge.”
It can be interpreted that the price situation has gotten worse enough that shock therapy, Big Step, should be considered as one of the options.
KTB yields rose one after another as the bond market shook a lot yesterday at the unexpected big step remarks.
There is also an interpretation that the Bank of Korea gave a strong signal to raise interest rates further ahead of the Monetary Policy Committee meeting to be held on the 26th.
As the impact of the big step remarks grew, the BOK started to evolve as a principled remark, but it is analyzed that it revealed the concerns of the monetary authorities, which had to hold both inflation and the interest burden of ordinary people.Keywords: