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BOK Chief Hints at Rate Hike, ‘Orderly' Exit from Monetary Easing

Write: 2021-06-11 09:34:32Update: 2021-06-11 11:39:51

BOK Chief Hints at Rate Hike, ‘Orderly' Exit from Monetary Easing

Photo : YONHAP News

Bank of Korea(BOK) Governor Lee Ju-yeol has again hinted at a potential rate hike this year and an "orderly" exit from the monetary easing policy. 

Lee suggested a possible increase in rate on Friday in a speech for an event marking the 71st anniversary of the BOK's foundation.

The BOK chief said that if the Korean economy is expected to continue its solid pace of recovery, the bank will normalize the current easing of monetary policy in an orderly manner at an appropriate time.

Lee said that the local economy is rapidly recovering from the shock of the pandemic and the recovery is expected to accelerate in the second half. 

He strongly hinted at a rate increase, citing snowballing household debt amid aggressive investment with borrowed money in property, stocks and crypto assets. He said the bank will take measures to stabilize the market at an appropriate time if necessary. 

Regarding the timing of normalizing the current monetary policy, the top banker said that it will depend on the COVID-19 situation, the pace of economic recovery and the risks of financial imbalances.

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