RPT-HIGHLIGHTS-Bank of Korea Governor Lee’s comments at news conference


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SEOUL May 25 South Korea’s central bank kept
interest rates unchanged for an 11th straight month on Thursday,
opting for stability in its first policy review since President
Moon Jae-in’s inauguration.

Following are key remarks from Bank of Korea Governor Lee
Ju-yeol’s news conference, translated by Reuters:

RATE DECISION:

ECONOMY:

“Going forward, local economic growth is expected to be
slightly above the path projected in April.”

“Household loan growth slowed of late but the magnitude of
slowing is still small and the housing sales remain robust,
requiring a further close watch on the trend for a while.”

MONETARY POLICY:

“I agree with the finance minister-nominee’s remarks that
effects of fiscal policy on the economy will be bigger than
those of monetary policy.”

“Fiscal policy is a better tool than monetary policy in
terms of its direct impact on pursuing specific goals such as
job creation.”

“My previous view is still that we will not make a decision
automatically in response to the U.S. Fed’s policy moves.”

“Employment is an important factor for the monetary board to
consider when reviewing policy.”

(Reporting by Cynthia Kim and Choonsik Yoo)