Tuesday, March 14, 2017

As long as the original MPC "US interest rates, the expected effects can be exceeded."



[Korea financial newspaper choice is a reporter] Bank of Korea Monetary Policy Committee will base rate for the aftermath of a rate hike have on the financial markets of the US Federal Reserve (Fed) in one month 23 days monetary policy orientation meeting 8 months frozen at annual 1.25% It showed that intensive emphasis.

According to the Bank of Korea 14 days public "2017 Year of the Fourth Monetary Policy Committee (regular) meeting minutes', A MPC circle" Meanwhile, the US Federal Reserve raised interest rates, and other countries central banks are called to expand or maintain an easing non-harmonized other major central banks led this phenomenon came stepping recent monetary policy easing is also showing signs embark on degree of reduction in monetary policy, "he said.

A MPC circle 'is thought to be the global economic growth recovery and inflationary pressures, under the low interest rate environment financial imbalances accumulate, such as exchange rate pressures in the US new administration background' said 'If you want to change in such a direction of Fed policy rate further increases domestic financing this will impact on the market, keep in mind that the greater possession than expected, "said the jipeot.

The Fed is observed as coming to raise the policy rate 14 to 15% in the current year 0.50~0.75 (Reuters) - The Federal Open Market Committee (FOMC).

B MPC also won the American Federal Reserve will raise interest rates when there is a need to continue to keep it views that you can expect faster than the market "he said. B Commissioner, will pay foreign exchange reserves of China, while the $ 3 trillion to fall below a viscosity that could shake the influence of such emerging markets as points, with concerns about the Chinese market, the US exchange rate policy and protectionist policies Caution " he said.

C MPC source also 'can inadvertently lead to a US interest rate hike this sudden financial market instability and some emerging countries may face difficulties when the dollar liquidity crunch, said "outside interest spread is an interest rate hike expected change in the US Federal Reserve in a collapsed condition it is necessary to pay attention to potential market instability, which can cause 'he said.

Closely Monitoring for household loans was also re-emphasized. D MPC won the 'non-bank loans will be noted continuously in danger of the soundness of household debt decreased, replacing bank lending, said "correspond to a further rise, credit risk increased likelihood of future market rates to private businesses, SME sector that the intermediary function to facilitate the work jipeot we will continue to pay attention. "

E MPC circle 'last year following the December January bank household loans growth rate reduced motion, but followed and due to seasonal factors, "said' household lending trends, housing market conditions continue to closely check the government measures effective for inhibiting lending he said it should be ".

Another F MPC source also 'in January look According to the Employment Trends larger parka year decrease in the number employed in manufacturing significantly restructuring employment' saying 'Employment decreased in manufacturing is the expansion of the falling part of the quality of the so-called employment and increasing self-employment It looks to be important in preventing subsequent level to prevent deterioration of household debt problem, "he said.

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