• We had President Lee saying that the BOK did the right thing when it held rates steady instead of cutting rates because that would boost the property market further. He said the property market is a ticking time bomb. What's your take on whether or not the property sector is a consideration for your monetary policy decisions?
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  • Rhee Chang Yong
    Definitely property prices, especially in metropolitan areas like Seoul, affect financial stability. Price stability is our mandate, but with inflation close to 2%, we have achieved our price stability goal. Now we must look at financial stability as a constituent condition, balancing stimulus via interest rate cuts against the risk of further inflating housing prices.
  • Are more government measures expected before cutting rates further?
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  • Rhee Chang Yong
    Monetary policy alone cannot control the housing crisis; it needs coordinated government policies over the longer term. Rate cuts remain on the table given a negative output gap and growth below potential. However, the magnitude and timing of cuts depend on upcoming data.
  • What is your view on the bond market yields which seem to suggest rate cuts might not be needed?
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  • Rhee Chang Yong
    Bond yields react to both domestic and global factors, including US Fed decisions and dollar strength. The market is divided, making it difficult to interpret. Rising yields are a concern because they affect monetary transmission mechanisms.
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