ID :
188642
Wed, 06/15/2011 - 06:09
Auther :
Shortlink :
https://www.oananews.org//node/188642
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Finance minister, BOK chief stress price stability, policy coordination
South Korea's finance minister and the top central banker stressed on Wednesday the need to put policy priority on keeping price stability and agreed to beef up efforts for close policy coordination as economic uncertainty lingers.
Finance Minister Bahk Jae-wan, who took office on June 2, held his first meeting with Bank of Korea (BOK) Gov. Kim Choong-soo to assess economic conditions at home and abroad, and discuss how to boost cooperation.
"They shared the view that the government and the BOK should put policy priority on keeping price stability and manage the macroeconomic policies to back up the recovery in the job markets," the finance ministry and the BOK said in a joint statement.
The top policymakers said as economic uncertainty at home and abroad persists, the government and the BOK will strengthen their efforts to closely cooperate by sharing information and exchanging views about economic conditions. As part of such efforts, the government and the BOK will hold a working-level meeting on a monthly basis, attended by the vice finance minister and the BOK's senior deputy governor.
"In a situation where economic uncertainty at home and abroad linger, I am happy that the government and the central bank can come together to discuss pending issues," Finance Minister Bahk said before holding the meeting with the BOK head.
The meeting came as the BOK hiked the key interest rate last week by a quarter percentage point to 3.25 percent, the third rate increase this year, in a bid to tame inflation. The BOK has raised the borrowing costs in five steps from a record low of 2 percent since July last year.
Finance Minister Bahk said last week that South Korea should take "all possible policy measures" to curb inflation as high prices could undermine the economic recovery and hurt the livelihoods of people.
But a slew of economic uncertainty such as the eurozone debt crisis is serving as downside risks to economic growth, leading BOK policymakers to take a cautious stance against the pace of the tightening bias.
Yoon Jong-won, head of the finance ministry's economic policy bureau, said in a briefing that the finance minister and the BOK chief downplayed the possibility of a global double-dip recession.
But the two shared the view that economic uncertainty lingers as there is the need to be watchful against potential impacts of the Federal Reserve's exit from its stimulus and oil price movements, he said.
The finance minister and the BOK governor did not discuss the foreign exchange rate and a revision of a law to expand the BOK's role in coping with financial instability, Yoon added.
Meanwhile, Yoon said the country's vice finance minister will likely continue to attend the BOK's rate-setting meeting as an observer as there needs to be more close cooperation between the two bodies and the move is not intended to influence the BOK's rate decision.
Since January last year, the government has exercised its right to attend the BOK's policy meeting, the first time in over 10 years. But many experts say that the move hurts the central bank's independence in managing the monetary policy.
Finance Minister Bahk Jae-wan, who took office on June 2, held his first meeting with Bank of Korea (BOK) Gov. Kim Choong-soo to assess economic conditions at home and abroad, and discuss how to boost cooperation.
"They shared the view that the government and the BOK should put policy priority on keeping price stability and manage the macroeconomic policies to back up the recovery in the job markets," the finance ministry and the BOK said in a joint statement.
The top policymakers said as economic uncertainty at home and abroad persists, the government and the BOK will strengthen their efforts to closely cooperate by sharing information and exchanging views about economic conditions. As part of such efforts, the government and the BOK will hold a working-level meeting on a monthly basis, attended by the vice finance minister and the BOK's senior deputy governor.
"In a situation where economic uncertainty at home and abroad linger, I am happy that the government and the central bank can come together to discuss pending issues," Finance Minister Bahk said before holding the meeting with the BOK head.
The meeting came as the BOK hiked the key interest rate last week by a quarter percentage point to 3.25 percent, the third rate increase this year, in a bid to tame inflation. The BOK has raised the borrowing costs in five steps from a record low of 2 percent since July last year.
Finance Minister Bahk said last week that South Korea should take "all possible policy measures" to curb inflation as high prices could undermine the economic recovery and hurt the livelihoods of people.
But a slew of economic uncertainty such as the eurozone debt crisis is serving as downside risks to economic growth, leading BOK policymakers to take a cautious stance against the pace of the tightening bias.
Yoon Jong-won, head of the finance ministry's economic policy bureau, said in a briefing that the finance minister and the BOK chief downplayed the possibility of a global double-dip recession.
But the two shared the view that economic uncertainty lingers as there is the need to be watchful against potential impacts of the Federal Reserve's exit from its stimulus and oil price movements, he said.
The finance minister and the BOK governor did not discuss the foreign exchange rate and a revision of a law to expand the BOK's role in coping with financial instability, Yoon added.
Meanwhile, Yoon said the country's vice finance minister will likely continue to attend the BOK's rate-setting meeting as an observer as there needs to be more close cooperation between the two bodies and the move is not intended to influence the BOK's rate decision.
Since January last year, the government has exercised its right to attend the BOK's policy meeting, the first time in over 10 years. But many experts say that the move hurts the central bank's independence in managing the monetary policy.
