Bank of Korea Governor Rhee Chang-yong said the central bank will do its best to coordinate policy with the government to ensure the economy has a soft landing at a time when the country faces an array of headwinds from falling exports to a weakening property market.
(Bloomberg) — Bank of Korea Governor Rhee Chang-yong said the central bank will do its best to coordinate policy with the government to ensure the economy has a soft landing at a time when the country faces an array of headwinds from falling exports to a weakening property market.
The BOK will monitor financial and foreign exchange markets closely and take measures if needed to help maintain their stability while keeping the focus on fighting inflation, Rhee said in a message to financial institutions marking the start of the new year.
While largely in line with his earlier speech on Jan. 1, his comments highlight the importance of cooperation between the central bank and the government as economic growth slows while interest rates remain elevated. Housing prices have started to fall at a rapid pace while consumption slackens, and foreign-exchange volatility is a concern for policymakers.
The BOK has its next rate decision on Jan. 13 where it is widely expected to raise the benchmark rate by another quarter point in what could be the last hike of the current tightening cycle. The rate currently stands at 3.25%.
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