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S.Korea gov: Comment on rate adjustment does not signal tightening
June 13, 2017 / 5:22 AM / in 6 months

S.Korea gov: Comment on rate adjustment does not signal tightening

SEOUL, June 13 (Reuters) - South Korea’s central bank chief on Tuesday said the market should not interpret a comment of his as a sign the bank may soon tighten monetary policy, and reiterated that accommodative interest rates are here to stay to support growth.

“The situation now doesn’t warrant policies to be tightened,” Governor Lee Ju-yeol told reporters after meeting the new finance minister Kim Dong-yeon at the bank’s headquarters in Seoul.

“My message (on Monday) was that the bank will continue to support growth.”

In a speech for the Bank of Korea’s 67th anniversary, Lee on Monday said the central bank may need to adjust the interest rate if economic recovery continues and shows clear signs of improvement..

The BOK’s policy rate is currently at a record low of 1.25 percent.

South Korea’s economy grew 1.1 percent in January-March from the previous quarter on a seasonally adjusted basis, its strongest in six quarters. (Reporting by Cynthia Kim and Se Young Lee; Editing by Richard Borsuk)

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