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BOK Chief Hints at Rate Hike

Written: 2018-10-04 09:33:03Updated: 2018-10-04 15:58:28

BOK Chief Hints at Rate Hike

Photo : YONHAP News

Bank of Korea Governor Lee Ju-yeol sent a signal for a possible rate hike, citing the need to address an increasing imbalance in the financial sector due to low borrowing costs. 

The central bank chief said in a breakfast meeting with economists in Seoul Thursday that an imbalance in the financial sector is steadily increasing with rising household debt. He stressed the need to gradually reduce that imbalance to manage the country's macroeconomic fundamentals stably. 

Lee said that the global economy is facing new challenges and risk factors such as growing debt, the increasing income gap, spread of populism and major countries' moves to normalize their monetary policy. 

He called for active efforts to increase corporate investment, create an investment-friendly environment and boost business sentiment with deregulation.

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