The Bank of Korea’s base rate, which had maintained 0.5% for 15 months, was raised to 0.75% in August.
However, in the financial sector, the BOK is expected to raise the key interest rate by an additional 0.25 percentage point once again in the second half of this year, and the MPC is expected to raise it in November.
Reporter Park Byung-han reports.
The base interest rate, which had been maintained at 0.5% since May of last year after the outbreak of COVID-19 at the beginning of last year, was raised by 0.25 percentage points on the 26th of last month for the first time in 15 months and adjusted to 0.75%.
[이주열 / 한국은행 총재 : 물가상승 압력이 당분간 높은 수준을 나타낼 것으로 예상되는 점, 완화적 금융 여건 하에서 금융 불균형 위험이 계속 누적되고 있는 점을 고려해 기준금리를 0.25% 포인트 인상하기로 결정했습니다.]
However, the financial sector expects an additional rate hike within this year.
The BOK has sent signatures to the market, citing the possibility of further hikes in the base rate whenever there is an opportunity.
[박종석 / 한국은행 부총재보 : 8월의 (기준금리) 인상을 시작으로 그 시기와 속도는 향후 경제 상황, 금융 안정 상황에 달려 있지만 사이클은 인상 사이클로 들어간 것은 다 아는 사실입니다.]
Amid the skyrocketing household debt and apartment prices, academics also see an additional base rate hike as inevitable.
[성태윤 / 연세대 경제학부 교수 : 물가 상승세와 가파른 가계부채 증대세를 고려할 때 금리 조정은 불가피했고 현재 상황에서 가계부채 확대가 완화되거나 전반적인 물가 안정이 이루어지지 않으면 추가적인 금리 조정도 필요합니다.]
The Monetary Policy Committee, which will decide whether or not to raise the base rate, has two remaining days on October 12 and November 25 this year.
The market expects the Bank of Korea to raise the base rate to 1.25%, and the second hike is expected in the second half of next year, after Bank of Korea Governor Lee Ju-yeol retired in March next year.
This is YTN Park Byung-han.
YTN Park Byung-han (email@example.com)
[저작권자(c) YTN & YTN plus 무단전재 및 재배포 금지]