[한은 미리보기]The minutes of this year’s 4th Financial Services Commission released… What is the background of interest rate freezing?

[한은 미리보기]The minutes of this year’s 4th Financial Services Commission released… What is the background of interest rate freezing?

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[이데일리 이윤화 기자] The Bank of Korea will release the minutes of the 4th Monetary Policy and Monetary Committee of 2021 next week. The minutes of the KFTC can give a glimpse into the economic perception of the KFTC members about the background of the freezing of the base rate.

Bank of Korea Governor Lee Ju-yeol presides over the meeting at the Financial Monetary Commission plenary meeting held at the Bank of Korea in Jung-gu, Seoul on the morning of the 25th of last month. (Photo = Bank of Korea)

As a result of the Financial Services Commission held on the 25th of last month, the BOK decided to freeze the base rate of 0.5% per year for the sixth time (9 months in terms of number of months). Although there are concerns about inflation (increased inflation) due to rising international oil prices, it was judged that the inflation pressure from the demand side, such as the real economy, is not large and economic uncertainty due to Corona 19 is greater.

Bank of Korea governor Lee Ju-yeol said at a press conference held on the same day, “Due to low interest rates, money to the asset market is concentrated, household debt is still largely increasing, and financial stability risks are high, as well as concerns about inflation. However, it is not a situation to mention the normalization of monetary policy in earnest, such as raising interest rates, as economic uncertainty is high depending on how the Corona 19 spread, mutations, and vaccines will happen. Monetary policy will continue to ease until the domestic economy is expected to show a stable recovery.”

On this day, the BOK also announced the import and export price index for February. According to the trade index and terms of trade in January, the export volume index was 114.20, up 8.0% from the same month last year. The export volume index has been on the rise for the fifth month since last September.

Weekly Press Plan

△15th (Mon)

12:00 The long- and short-term effects of deteriorating employment conditions on new college graduates (BOK Issue Note 2021-2)

△16th Tuesday

12:00 Payment and settlement trends in 2020

12:00 Foreign currency deposit trends for residents in February 2021

15:45 February 2021 Import and Export Price Index

16:00 Release of the minutes of the 4th Financial Services Commission in 2021

△17th (Wed)

12:00 2021 Financial Economy Law Research Paper Prize Competition

△18th (Thursday)

12:00 Currency and liquidity in January 2021

12:00 2021 Bank of Korea Monetary Policy Contest held

△21st (Sun)

12:00 Overseas Economic Focus Paper: Current Status and Impact of Antitrust Regulations on US Big Tech Companies

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