(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 about the need to raise the price 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 about the possibility of achieving the 3.6% inflation forecast this year, Governor Lee also said, “Many news in the United States have a bad side in terms of prices,” but added, “Because the US economy is so strong, it 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 about 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 could further extend the short-term financial market stabilization measures 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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