S. Korea has 'no urgency' to cut key lending rate soon: IMF director
简介MARRAKESH, Morocco -- South Korea has "no urgency" to lower its key lending rate as bringing down in ...
MARRAKESH, Morocco -- South Korea has "no urgency" to lower its key lending rate as bringing down inflation still remains a priority, a director at the International Monetary Fund said Saturday.
Krishna Srinivasan, the director of the Asia and Pacific Department at the IMF, made the remarks, noting that the Bank of Korea has "appropriately" maintained a monetary policy tightening approach as inflation remains elevated above its 2-percent target.
"Given the fact that inflation is still above the target range, we expect or we would recommend the Bank of Korea to keep a tightening stance … There's no urgency to cut rates soon," he said in a meeting with reporters on the margins of the two-day G20 Finance Ministers and Central Bank Governors Meeting that ended Friday.
South Korea's on-year consumer prices accelerated by the most in five months in September, rising 3.7 percent on-year, driven by higher oil costs and rising prices of some agricultural products.
The BOK held its key interest rate steady at 3.5 percent in August for the fifth consecutive time as it took into account a slowdown in growth and other factors in the midst of moderating inflation.
Concerning exports, Srinivasan said the recovery will be affected mostly by the global tech cycle as well as the economic recovery of China, the top trading partner of Asia's No. 4 economy.
"We note that there could be upside risks and downside risks," he said, noting that if China grows faster than the IMF's projection of 4.2 percent next year, it will give a boost to the South Korean exports.
South Korea's exports fell for the 12th consecutive month in September but logged the smallest on-year decline so far this year, as global demand for semiconductors has been on the recovery track.
The director pointed out it is "the right way to go" to reduce expenditures handed out during the pandemic.
"The growth is slowing because of the weakening external demand. So you don't want to provide fiscal stimulus now," the director said. "I think it is important that you have a well fleshed out medium-term fiscal framework with fiscal rules so that you keep an anchor for public debt."
He was referring to South Korea's envisioned fiscal policy, which centers on capping the fiscal deficit at 3 percent of the country's gross domestic product.
Touching on the Israel-Hamas conflict in the Middle East, the director said the geopolitical tensions from the region may weigh down on the economies of Asian countries that depend on imports for their energy needs.
"If oil prices go up by 10 percent, then global output falls by 0.15 percent," he said. "Asian economies depend a lot on oil, so they are likely to be more affected by the shocks. The number for Asia in terms of inflation will be higher." (Yonhap)
"And the Witch Went into the Forest"By SanhoGoble/DulnyoukIn Sanho’s latest graphic novel, readers a ...
It's been quite a year for Nam Woo-hyun of the K-pop boy group Infinite. He was diagnosed with ...
An American in his 30s was caught by the police for writing “igari,” which means bruxism -- more com ...
Seoul shares open lower ahead of earnings season
Seoul shares open higher despite US losses
Female Nexon employee berates 'misandrist gesture' in MapleStory video
TBS appeals to Seoul to hold off on slashing support
[KH Explains] Amazon's cloud industry plans raise fears of Korean market monopoly
Jeju Island offers many choices for holidaymakers with pets
- “가자주민 삶 최악…한국지원 절실”
- [Herald Interview] Alex Olle’s realistic reimagination of opera ‘Norma’ keeps art form alive
- [Exclusive] 'Game of Thrones' publisher inks deal for Korean books for first time
- Seoul shares end higher on tech gains, Fed comments
- New US special envoy for N. Korean human rights issues takes office, plans to visit Seoul next week
- KT & G to build new tobacco plant in Kazakhstan
- Striving to be the best, TXT returns with 3rd LP
- PM visits Greece for talks on cooperation, World Expo bid campaign
- Yoon says improved relations between S. Korea, Japan are people's will
- [Herald Interview] Samuel Youn celebrates career in ‘From Darkness to Light’
- Ruling party reform committee under pressure to disband
- 19 S. Koreans held captive in Myanmar freed: ministry
- Ruling party urges Yoon to veto opposition
- Music director, composer Jung Jae
- Weak won pushes import prices up in October
- Seoul shares down amid possible US government shutdown woes
- JYP to 'take K
- Bikes or motor vehicles? E
- ‘Believer 2’ returns as 'midquel' with new characters, stronger plot
- Fifty Fifty’s Keena to attend 2023 BBMAs
- Dunamu hosts forum on blockchain's potential
- After robot conductor, National Orchestra of Korea explores virtual reality
- [From the Scene] Building 100
- 한·미 북핵 대응 전략 10년 만에 다시 쓴다
- LG companies hint at grand promotions to celebrate Twins' big win
- Seoul Metropolitan Traditional Orchestra meets electronic beats
- BTS company Hybe heading to Latin America
- UNESCO HQ hit by largest
- KBS determined to regain public trust
- Bithumb to push for IPO in 2025