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Finance minister speaks against interest rate hike
Writer : Sender
Nov 12, 2009
Finance Minister Yoon Jeung-hyun said Wednesday it is premature for the nation to adopt an exit strategy and raise its benchmark interest rate.
In a parliamentary interpellation session, Yoon said he believes the central bank has a similar viewpoint, as far as the interest rate policy is concerned.
Yoon's remarks came as the Bank of Korea is to convene its Monetary Policy Committee Thursday to set the target call rate for November.
"The use of an exit strategy is too early. I also think an increase in the benchmark interest rate is premature," Yoon said after a ruling party lawmaker asked the government to be cautious about raising the interest rate.
"The Monetary Policy Committee is expected to make a wise judgment considering these circumstances."
The minister then carefully ruled out the possibility of the South Korean economy sinking into a double dip, saying the economy is expected to grow 4 percent next year.
President Lee Myung-bak also told parliament last week that his government will stick to its pro-growth fiscal and monetary policies until the global economy makes a firm recovery.
Lee also vowed to set the timing for the beginning of the exit strategy through close coordination with advanced countries.
(Source: Yonhap News)
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