[Korea financial newspaper choice is a reporter] weight to the Bank of Korea Monetary Policy Committee has 23-day it is freezing interest rates at the current annual 1.25% to overall burden and the United States Trump new government policy directions uncertainty less accumulated household debt interest riser financial stability the pool is to be placed.
MPC Bank of Korea held a regular meeting of the day was freezing the base rate to 1.25% in February year level. Before the Bank of Korea was maintained after 8 months fell to 1.25% from the 1.5% per annum benchmark rate in June last year.
The base rate freeze will keep the interest rate level than the one in the benchmark interest rate adjustments, and internal and external uncertainty is interpreted to have to watch the situation.
Internally euron yeogan base rate cuts in the past two years, household debt has soared is that our economy is emerging as a detonator.
According to the Bank of Korea late last year, household credit balances surged 141.2 trillion won (11.7%) than in 1344 tighten the end of 2015 300 billion won (1203 1000 1 trillion won). As long as one is this balance since 2002, began to come up statistics household credit exceeded 1,300 trillion won for the first time.
Statistics, according to the Bank of Korea, Financial Supervisory Service (FSS) of '2016 household financial welfare Survey, showed that households spend to repay the loan principal and interest to 26.6% of disposable income.
If multiple debts, income, jeosinyong be vulnerable if the borrower interest rate hike is inevitable Sudan burden increases greater impact.
Externally viscosity euron considered a rate hike in the US Federal Reserve (Fed) is in earnest late last year. In the day dawn it announced the Federal Open Market Committee (FOMC) January regular meeting minutes to Korea time the Fed has suggested that post "quite near future I '(fairly soon) policy rate is assumed if' employment and inflation indicators are consistent with the expected ' did.
Based on current interest rates in the United States opened 0.50 ~ 0.75% benchmark interest rate is 1.25% a year in Korea. The United States is capable of reversing the situation when interest rates carried out a rate hike this year, 2-3 times.
Protectionism Donald Trump's new government to assert the policy direction, regarded as the negative Saad etc. (THAAD, high-altitude missile defense system) conflicts with China's high trade dependence of our economy.
Our economic growth rate, but poor economic conditions represent as much as 0% for the fifth quarter is observed that the rate freeze in Sudan. The Bank of Korea governor Lee Ju-yeol sinnyeonsa this year, while the operating year monetary policy will pay special attention to financial stability, "he has said.
Meanwhile, in a press conference immediately after the MPC meeting gathered the attention of the BOK governor Lee Ju-yeol day. In the foreign exchange market of US Treasury Currency report released in April ahead of the coming devoting a tactile 'currency manipulator' designated issues.
Financial Daily Economic News FNTIMES - unauthorized reproduction for commercial purposes in accordance with the Copyright Act, No copying, distribution,
Copyright ⓒ Korea's financial newspaper & FNTIMES.com
