ID :
81676
Fri, 09/25/2009 - 14:23
Auther :
Shortlink :
https://www.oananews.org//node/81676
The shortlink copeid
S. Korea to maintain stimulus measures to counter global downturn: finance minister
SEOUL, Sept. 25 (Yonhap) -- South Korea will keep its expansionary economic
measures in place to counter a global economic downturn, its finance minister
said Friday, adding that it is "premature" to talk about the timing of the
so-called exit strategy.
During an interview with Reuters, Finance Minister Yoon Jeung-hyun also cautioned
against an early interest rate hike, underscoring his different views on the
monetary policy direction with the nation's central bank.
"At this moment we cannot discuss the timing (of an exit strategy)," said the
minister who is staying in the U.S. to attend the G-20 summit. "It's too
premature. That's our absolute position."
South Korea's government has unveiled diverse economy-boosting measures including
expanded fiscal spending and tax cuts aimed at bolstering consumption and
corporate investment. The Bank of Korea (BOK) also joined the move by slashing
its key interest rate sharply to a record low of 2 percent.
Thanks to such active expansionary measures, South Korea's economy is making a
faster-than-expected rebound, with key economic indicators signaling a recovery
from the worst economic downturn since the 1997-98 financial meltdown.
The improved mood has led some policymakers and experts to suggest the need for
the government and the central bank to withdraw those measures as excessive
liquidity could cause side effects such as inflation and bubbles in the housing
market.
The central bank also hinted in a recent press conference that it could raise the
interest rate if housing prices continue their upward trend, a move deemed to be
part of an exit strategy.
Yoon, however, cautioned against a hasty rate increase as South Korea's economy
has yet to fully recover, saying it is "too premature to touch upon the interest
rate."
On the premise that the time is ripe for an exit strategy, the minister said that
the government will take back such measures as credit guarantees and rolling over
loans for small and medium enterprises first in order to restore "market
discipline."
"Our focus now is that the private sector will become stronger and play a greater
role going forward," he said.
kokobj@yna.co.kr
(END)
measures in place to counter a global economic downturn, its finance minister
said Friday, adding that it is "premature" to talk about the timing of the
so-called exit strategy.
During an interview with Reuters, Finance Minister Yoon Jeung-hyun also cautioned
against an early interest rate hike, underscoring his different views on the
monetary policy direction with the nation's central bank.
"At this moment we cannot discuss the timing (of an exit strategy)," said the
minister who is staying in the U.S. to attend the G-20 summit. "It's too
premature. That's our absolute position."
South Korea's government has unveiled diverse economy-boosting measures including
expanded fiscal spending and tax cuts aimed at bolstering consumption and
corporate investment. The Bank of Korea (BOK) also joined the move by slashing
its key interest rate sharply to a record low of 2 percent.
Thanks to such active expansionary measures, South Korea's economy is making a
faster-than-expected rebound, with key economic indicators signaling a recovery
from the worst economic downturn since the 1997-98 financial meltdown.
The improved mood has led some policymakers and experts to suggest the need for
the government and the central bank to withdraw those measures as excessive
liquidity could cause side effects such as inflation and bubbles in the housing
market.
The central bank also hinted in a recent press conference that it could raise the
interest rate if housing prices continue their upward trend, a move deemed to be
part of an exit strategy.
Yoon, however, cautioned against a hasty rate increase as South Korea's economy
has yet to fully recover, saying it is "too premature to touch upon the interest
rate."
On the premise that the time is ripe for an exit strategy, the minister said that
the government will take back such measures as credit guarantees and rolling over
loans for small and medium enterprises first in order to restore "market
discipline."
"Our focus now is that the private sector will become stronger and play a greater
role going forward," he said.
kokobj@yna.co.kr
(END)
