Lee Chang-yong, Governor of the Bank of Korea, "Difficult to Assume Interest Rate Cuts in the Second Half"

Lee Chang-yong, Governor of the Bank of Korea, is striking the gavel at the Monetary Policy Committee meeting held on the 12th at the Bank of Korea in Jung-gu, Seoul. Photo by Joint Press Corps

Lee Chang-yong, Governor of the Bank of Korea, said, "I think it is currently difficult for all members of the Monetary Policy Committee to predict the possibility of an interest rate cut in the second half of the year."

At a press conference held after the Monetary Policy Committee decided to keep the base rate unchanged on the 12th, Governor Lee said, "If oil prices stabilize and the consumer price inflation rate reaches about 2.3% by the end of the year, I think the possibility of an interest rate cut in the second half of the year cannot be ruled out."

He added, "On the other hand, if the consumer price inflation rate rises higher than the path to 2.3%, it may be difficult to cut interest rates in the second half of the year."

Regarding his change of expression from "sufficiently long period" to just "sufficient" in describing the monetary tightening stance, Governor Lee explained, "If I say 'sufficiently long period,' it could send a message that an interest rate cut in the second half of the year is not possible."