Bank of Korea chief says rates need to be adjusted to secure policy room

SEOUL (Reuters) – South Korea’s central bank chief said on Friday that interest rates need to be adjusted as the bank needs to secure greater policy head room to support the economy next year and beyond.

“To prepare for what’s to come next year and beyond, there may be a need to adjust the extent of policy accommodation to secure policy room,” Bank of Korea Lee Ju-yeol told lawmakers at a parliamentary session in Seoul.

Lee also said the economy’s continued growth near its potential rate also warrants some adjustments in interest rates.

South Korea’s central bank held its base rate steady at 1.50 percent on July 12, as expected, but one board member’s dissenting vote may have raised the odds of a rate hike in coming months as major peers tighten monetary policy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.