[Sketch of the Monetary Policy Committee] "Will interest rates rise sharply?" Yoonje Cho, Monetary Policy Committee member, jokes ahead of the final MPC meeting

by Park Jaehyun

Published 12 Apr.2024 09:49(KST)

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Committee meeting held on the 12th at the Bank of Korea in Jung-gu, Seoul. Photo by Joint Press Corps

"Shall we raise the (base) interest rate sharply?"

On the 12th, Jo Yoon-je, a member of the Financial Monetary Policy Committee (FOMC) of the Bank of Korea, said this ahead of his last FOMC meeting.

At 9 a.m. that day, during the FOMC meeting held at the Bank of Korea headquarters in Jung-gu, Seoul, Governor Lee Chang-yong joked when he asked members Jo and Seo Young-kyung, whose terms were about to expire, "Please say a word to the reporters."

Governor Lee entered the meeting room on the 16th floor of the main building at 8:58 a.m. and took his seat. He began by saying, "Today is the last FOMC meeting for Committee Members Jo and Seo, who have worked hard all this time," and added, "I would like to express my gratitude to the two for their efforts."

He then joked to the two members, "Would you like to say a word? It's better to talk about interest rates at times like this."

Member Jo replied, "Shall we raise it sharply?" and the room was filled with laughter. It was an "appropriate joke" from Jo, who is usually classified as a hawk (favoring monetary tightening).

Meanwhile, the base interest rate was scheduled to be announced around 10 a.m. that day. With inflation still maintaining a high level and the possibility of an early rate cut in the U.S. decreasing, the market was expecting the rate to be held steady for the 10th consecutive time.