BOK governor has signaled that monetary tools are exhausted as fiscal deficit widens and economic growth cools
Bank of Korea (BOK) Governor Rhee Chang-yong warned on Thursday that neither interest rate cuts nor fiscal stimulus can restore South Korea’s slowing growth potential, stating bluntly that policy tools are reaching their limits and structural reform is the only sustainable path forward.
His comments came as the Ministry of Economy and Finance (MOEF) reported a consolidated fiscal deficit of about $33.9 billion (46.1 trillion won) from January to April, and as the Lee Jae-myung administration is set to finalize a second supplementary budget worth approximately $14.7 billion (20 trillion won).
Bank of Korea (BOK) Governor Rhee Chang-yong warned on Thursday that neither interest rate cuts nor fiscal stimulus can restore South Korea’s slowing growth potential, stating bluntly that policy tools are reaching their limits and structural reform is the only sustainable path forward.
His comments came as the Ministry of Economy and Finance (MOEF) reported a consolidated fiscal deficit of about $33.9 billion (46.1 trillion won) from January to April, and as the Lee Jae-myung administration is set to finalize a second supplementary budget worth approximately $14.7 billion (20 trillion won).
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