FACTBOX-S.Korean policymakers' comments on economy, policy

09.08.09, 07:45 PM EDT

SEOUL, Sept 9 (Reuters) - South Korea's central bank looks certain to hold interest rates again this week but may soon consider raising them to prevent loose monetary policy and growing economic optimism from stoking inflation expectation.

All 14 analysts surveyed by Reuters forecast the Bank of Korea would keep the base rate on hold at a record low of 2.0 percent on Thursday, staying pat for a seventh consecutive month after slashing it by 3.25 percentage points since October.

Article Controls
email

reprint

newsletter

comments

share

del.icio.us

Digg It!

yahoo

Facebook

Twitter

Reddit

rss

Yahoo! Buzz

Following are key comments that South Korean officials have made on the country's economy and monetary policy since the Bank of Korea's previous interest rate meeting on Aug. 11:

FINANCE MINISTRY, in its policy statement to parliament on Sept. 8:

'(Authorities) need to maintain the current expansionary policy....Normalisation of monetary policy and its timing and speed should be decided considering the economy, inflation and conditions of asset markets.'

FINANCIAL SERVICES COMMISSION CHAIRMAN CHIN DONG-SOO, before foreign journalists on Sept. 7:

Related Stories
Leaders' Statement On The Pittsburgh Summit
Service & Retail
Grab a Tiger by the Tail
Grab a Tiger by the Tail
Does Asia's Rebound Signal A Return To Stellar Growth?
Related Videos
Global Stocks Get G-20 Boost
Toby Keith: Lessons In Success
Week Ahead: Wal-Mart, JA Solar
Unemployment Chills Street
U.S. Jobless Hits 10.2%
StoriesVideosRate This Story
Your Rating
Overall Rating
Reader Comments
Post a Comment'As for the trends in short-term funds, household debt and corporate lending, we will conduct vigilant monitoring and take aggressive actions on any tipping effect or abnormal movement of capital.'

FINANCE MINISTER YOON JEUNG-HYUN, at a meeting with lawmakers on Sept. 2:

'I don't see the economy is yet in a full recovery. It's not time to discuss raising rates.'

FINANCE MINISTER YOON, at a forum on Aug. 31:

'On an exit strategy, global cooperation is important...Every country has a different situation, and implementation is premature. We should carry out an exit strategy gradually in line with an economic recovery and considering the impact on markets of any policy shift.'

PRESIDENT LEE MYUNG-BAK, at a meeting with business executives on Aug. 26:

'The government is dealing with (the economy) very carefully and I think it's premature to implement an exit strategy. It seems that major countries are of the opinion that exit strategies should be discussed during the first half of next year at the earliest.'

ONE UNNAMED BANK OF KOREA BOARD MEMBER, in minutes on the July meeting, released on Aug. 25:

'(Authorities) need to draw up micro-measures to prevent the recent monetary easing policy from giving rise to excessive asset price growth while closely monitoring the mortgage lending and asset price trends.'

INTERNATIONAL MONETARY FUND, in a report published on Aug. 21:

'(South Korean authorities) agreed that prudential regulation should be the first line of defence against frothy asset markets, as evidenced by a recent tightening of loan-to-value ratios in selected Seoul neighbourhoods. However, the authorities did not rule out interest rate hikes should more generalised asset price rises become a concern.'

FINANCE MINISTRY, in a statement on Aug. 20:

'(Related authorities) shared a view that the housing market could show instability in parts of the country in the autumn moving season and agreed to watch the market trend more closely.'

PRESIDENT LEE, at a speech on Aug. 15:

'Every week I convened an emergency economic meeting with senior cabinet members that helped us successfully weather the turmoil that hit the world. But we should not fall into complacency. We need to make further efforts to spur employment, investment and domestic demand.'

(Reporting by Seo Eun-kyung; Editing by Yoo Choonsik)

((eunkyung.seo@thomsonreuters.com;+822 3704 5648; Reuters Messaging:eunkyung.seo.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/RATES

(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)

Copyright Thomson Reuters 2009. All rights reserved.