Bank of Korea Governor Lee Chang-yong "One Monetary Policy Committee Member Keeps Possibility of Interest Rate Cut Within 3 Months Open"

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Direction Decision Meeting of the Monetary Policy Committee held at the Bank of Korea in Jung-gu, Seoul, on the morning of the 22nd. Photo by Joint Press Corps

One member of the Financial Monetary Policy Committee of the Bank of Korea has left open the possibility of a base interest rate cut within three months.

Lee Chang-yong, Governor of the Bank of Korea, said at a press conference held after the Monetary Policy Committee decided to keep the base rate unchanged on the morning of the 22nd, in response to a question about the interest rate outlook for the next three months, "Among the six committee members excluding myself, one said that the possibility of lowering the base rate to below 3.5% should be kept open." He added, "The other five expressed the view that it would be appropriate to maintain the rate at 3.5% even after three months."

The governor explained, "The five members expressed the opinion that since the inflation rate is still above 2% and there is increasing uncertainty about whether inflation will slow down as we expect, there is no need to rush a rate cut yet."

He continued, "One member expressed the view that consumption is weaker than initially expected, inflationary pressure is expected to ease, and domestic demand weakness should be proactively addressed, so an early rate cut cannot be ruled out."

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