South Korea’s Presidential Office Rejects Accusations of Central Bank Interference
Seoul, August 23, 2024 – TheSouth Korean Presidential Office has vehemently denied accusations of government interference in the Bank of Korea’s (BOK) independence, following criticism over recent statements regarding the centralbank’s decision to hold interest rates steady.
On August 22, the BOK’s Monetary Policy Board voted to maintain the benchmark interest rateat 3.5%, a decision that was met with a rare public statement from the Presidential Office. A high-ranking official expressed regret over the decision, stating that while the BOK sets interest rate policy, the move was regrettable from the perspective of stimulating domestic demand.
This statement drew immediate criticism from various quarters, with many accusing the Presidential Office of encroaching on the BOK’s autonomy and undermining its independence. Critics argued that the government’spublic expression of dissatisfaction with the BOK’s decision was inappropriate and could potentially influence future monetary policy decisions.
However, the Presidential Office swiftly defended its position, emphasizing that the government respects the BOK’s independence and the decisions of its Monetary Policy Board. A spokesperson for the Presidential Office clarified that the government’s statement was merely an expression of its perspective on the economic situation, particularly in light of the upcoming Chuseok holiday, a major holiday period in Korea.
The government respects the Bank of Korea’s independence and the decisions of its Monetary Policy Board, the spokesperson stated. The government’s statement wassimply an expression of its perspective on the current economic situation, and it was made with the intention of stimulating domestic demand ahead of the Chuseok holiday.
The spokesperson further emphasized that the government’s intention was to stimulate domestic demand and stabilize prices ahead of the Chuseok holiday, and that the government is planningto announce a package of measures to achieve this goal next week.
The BOK, for its part, has remained silent on the controversy, maintaining its commitment to independent monetary policy decisions. However, the recent exchange between the Presidential Office and the BOK has raised concerns about the potential for political interference in the central bank’s operations.
The BOK’s independence is a cornerstone of South Korea’s economic stability and its commitment to sound monetary policy. The central bank’s autonomy allows it to make decisions based on economic fundamentals, without political pressure. However, the recent controversy has highlighted the potential for political influence to undermine thiscrucial principle.
The government’s decision to publicly express its dissatisfaction with the BOK’s decision, even while acknowledging the central bank’s independence, has raised questions about the government’s commitment to this principle. The controversy has also raised concerns about the potential for future political interference in the BOK’soperations, which could have significant implications for South Korea’s economic stability.
The government’s upcoming announcement of measures to stimulate domestic demand and stabilize prices will be closely watched by economists and market analysts, who will be looking for signs of the government’s commitment to respecting the BOK’s independence and its commitmentto sound monetary policy.
【来源】https://cn.yna.co.kr/view/ACK20240823002400881?section=politics/index&input=rss
Views: 1