Household debt management will be a main challenge for 2022 as interest rates rise.
The heads of the Bank of Korea (BOK) and Financial Services Commission (FSC) agreed to work together on issues such as rising household debt.
Bank of Korea Gov. Lee Ju-yeol hinted at the need to raise interest rates within this year.
Korea’s central bank predicted the country’s economy will grow more than 3 percent this year, slightly higher than a forecast made in February.
Bank of Korea Gov. Lee Ju-yeol said the central bank will maintain an accommodative monetary policy in 2021 to help the country recover from the economic damage caused by Covid-19.
The Bank of Korea (BOK) last week stunned the market with its rate action. It had slashed the policy rate by 50 basis points to a fresh historic low of 0.75 percent in an emergency meeting in March. Since the cut was bigger than...