BoK calls for balance in considering rate cut

Bank of Korea governor Rhee Chang-yong. — Bloomberg

Seoul: Bank of Korea (BoK) governor Rhee Chang-yong called for a balanced approach in considering the timing of a policy pivot, another sign that the central bank is moving toward easing its restrictive interest rate later this year as inflation continues to cool.

“Shifting the policy stance too late could lead to market instability due to a weakening of domestic demand recovery and continued rising delinquency rates,” Rhee said in a speech marking the BoK’s founding anniversary. “Conversely, shifting policy too early could slow the pace of inflation deceleration and increase exchange rate volatility and household-debt growth.”