Economic uncertainty remains high: BOK chief

SEOUL, April 17 (Yonhap) -- South Korea's top central banker said Friday that
despite recent improvements in economic data, uncertainty surrounding economic
conditions at home and abroad is still high.
"(Against this backdrop), efforts to boost economic and financial stability
should be continued," Bank of Korea (BOK) Gov. Lee Seong-tae said in a meeting
with 10 heads of local banks.
His remarks come about one week after the BOK froze its key interest rate at a
record low of 2 percent for the second straight month, saying the economic
downturn has moderated.
But Lee warned that even though the economy may bottom out in the first half of
this year, businesses and consumers may not feel the impact, adding there is room
for possible rate cuts.
The BOK predicted last week that the local economy will contract 2.4 percent this
year due to falling exports and sluggish domestic demand. Asia's fourth-largest
economy may hit bottom in the second or third quarter, but it is expected to
recover very slowly due to uncertainty about the global recession.
Meanwhile, the heads of local lenders shared the view that foreign currency money
market situations have considerably improved, and that maturing debts are rolling
over smoothly.
South Korea's foreign currency liquidity situation has recently improved as local
banks beef up efforts to borrow from overseas and the country's current account
balance returns to the black.
sooyeon@yna.co.kr
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