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BOK Governor Warns Growing Uncertainty for Economy

Written: 2016-06-22 09:54:05Updated: 2016-06-22 15:27:18

BOK Governor Warns Growing Uncertainty for Economy

Bank of Korea Governor Lee Ju-yeol has warned that financial and economic uncertainties remain high both home and abroad.

Presiding over a monthly economic outlook meeting at the BOK on Wednesday, Lee said the anxiety in the global financial markets can be amplified depending on the result of Thursday's referendum on whether Britain should stay or leave the European Union.

He said speculations that the U.S. Federal Reserve will raise its key interest rates once or twice this year are also raising the uncertainty for Seoul’s monetary policy.  

Lee said the BOK’s slashing of its key rate early this month and government fiscal policies to increase spending will curb some of the impacts from the changing external and internal conditions.

However, he cautioned that uncertainty will remain high and it will be difficult to predict in which directions and at what paces the changes of the external and internal economic conditions will occur.

Lee ensured that in preventive measures, the central bank will keep a close eye on the real estate market, household debts, and movement of foreign capitals in and out of the country. 

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