It seems that the weather has gotten warmer, and I hope everything works out well.
Lee Chang-yong, governor of the Bank of Korea, said this as he opened the Monetary Policy Committee meeting at the Bank of Korea headquarters in Jung-gu, Seoul, on the 25th. His remarks appear to express hope that the decision on interest rates that day will go as smoothly as the warmer weather.
The Monetary Policy Committee started at 8:54 a.m. on the 16th floor of the Bank of Korea headquarters. Deputy Governor Yoo Sang-dae was the first to enter, followed by Commissioners Shin Seong-hwan, Hwang Geon-il, Jang Yong-sung, Lee Soo-hyung, and Kim Jong-hwa about three minutes later around 8:57. The Commissioners, who entered side by side, either looked at the document binders on the desk or stared into space.
The governor entered the meeting room at 8:59 a.m. Dressed in a checkered tie blending gray and blue, he took a seat at the chairman's desk and looked around. Following a request from the press, he tapped the gavel and said, "I will go down and see (after the meeting)."
The market has a strong expectation of a rate cut. Consumer sentiment has declined due to martial law and the subsequent impeachment political situation, increasing downside risks to the economy. The Bank of Korea also projected last month via its blog that this year's growth rate would be lower than the previous forecast of 1.9%, estimating it to be between 1.6% and 1.7%.
According to a survey conducted by the Korea Financial Investment Association from the 12th to the 17th, 55% of 100 bond management professionals expected the Bank of Korea to cut the key interest rate at the February Monetary Policy Committee meeting. Only the remaining 45% predicted it would be kept unchanged.
Kang Seung-won, a bond strategy team leader at NH Investment & Securities, who predicted a rate cut, said, "This year, the Federal Reserve will cut rates twice in June and December, and as a result, market interest rates will also show a downward trend. After the second quarter, the burden of domestic financial anxiety due to the Fed's tightening fears will disappear, and economic stimulus will become the top priority."