ID :
125248
Mon, 05/31/2010 - 14:44
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Gov't official to leave meeting before BOK sets rate: finance ministry


SEOUL, May 31 (Yonhap) -- South Korea's government said Monday that it will not
attend the central bank's rate-setting moment from next month amid suspicions the
government is attempting to influence the bank's monetary policy direction.
The decision was made after the government invoked a law-guaranteed right in
January -- for the first time in about 10 years -- to send its vice finance
minister to the monthly meeting of the Bank of Korea in order to voice its
opinions over its monetary policy measures.
At the time, the government allegedly wanted the interest rate to remain low to
stimulate the sluggish economy, while the central bank pushed to raise borrowing
costs as debate grew over the timing of rolling back stimulus measure introduced
to ride out the global crisis.
The finance minister continues to attend the meeting, but will leave before BOK
policymakers decide on its benchmark policy rates, a high-ranking official said.
"It will be applied from a June meeting."
The move comes as the BOK is complaining that the attendance of a government
official at the meeting could affect its decision-making process.
Under existing laws governing the operation of the central bank, a vice finance
minister or vice chairman of the Financial Services Commission is allowed to
attend the meeting to relay the government's stance on specific policy issues.
(END)

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