[2020 National Audit] Lee Ju-yeol "If the economy worsens from now, interest rate cuts can be considered"

October 16 National Assembly Planning and Finance Committee 'Bank of Korea National Audit'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Lee Ju-yeol, Governor of the Bank of Korea, said, "If the economic downturn leads companies and individuals to need to lower their financing costs, we can consider cutting interest rates."

Governor Lee made this remark on the 16th during a National Assembly Planning and Finance Committee audit.

When Seiljun Seo, a member of the People Power Party, asked whether there is room left for interest rate cuts, Governor Lee responded, "The remaining room is not large, but there is some room."

Regarding criticism that low interest rates have encouraged a concentration in risky assets, he acknowledged, "It is true that low interest rates have caused side effects such as asset concentration," but added, "They helped ease corporate financing conditions and resolved financial market instability, preventing further deterioration of the real economy."

Governor Lee also explained the increase in household debt, saying, "It is inevitable that household debt increases during the COVID-19 situation," and added, "However, it is not desirable for it to continue increasing sharply."