Lee Chang-yong "Inflation Rate Expected Below Mid-2% in Second Half of Next Year"

Current Issues Inquiry at the National Assembly's Strategy and Finance Committee on the 22nd

Lee Chang-yong, Governor of the Bank of Korea, said that the inflation rate will "fall below the mid-2% range in the second half of next year."

Governor Lee attended the National Assembly's Planning and Finance Committee's current issues inquiry on the 22nd and responded to a question from Lee Soo-jin, a member of the Democratic Party of Korea, asking about the future inflation rate. He said, "There is a possibility that the inflation rate will enter the 3% range around August to September, and then it will gradually decline, falling below the mid-2% range in the second half of next year."

Governor Lee emphasized that the speed of price stabilization in South Korea was fast. He said, "Many factors affecting domestic inflation are external," adding, "Among advanced countries, we are the only ones whose inflation rate has fallen below 3% in a short period of time."

Regarding the direction of the base interest rate adjustment at the Monetary Policy Committee meeting scheduled for the 24th, Governor Lee said, "It is a silent period, so it is difficult to speak specifically," but added, "I will consult with the Monetary Policy Committee members considering Chairman Powell's remarks at the U.S. Jackson Hole meeting, expectations for the September Federal Open Market Committee (FOMC) decision, the slower-than-expected recovery of the Chinese economy, the recent allowance of group tourists from China and its impact on our economy, and household debt."

Bank of Korea Governor Lee Chang-yong is talking with officials at the Planning and Finance Committee plenary meeting held at the National Assembly on the 5th. Photo by Hyunmin Kim kimhyun81@