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[THE INVESTOR] The Bank of Korea may consider altering the benchmark rate by smaller increments. In a report submitted to Rep. Park Joo-hyun of the minor opposition People’s Party, the BOK said that smaller changes could be considered in situations that require a more cautious approach.
At present, the BOK alters the benchmark rate by 0.25 percentage points, and has been against making smaller changes saying that such changes would have limited impact.
At present, the BOK alters the benchmark rate by 0.25 percentage points, and has been against making smaller changes saying that such changes would have limited impact.
In the report submitted to Park, however, the BOK said that smaller changes could be considered when uncertainties about the impact and side effects of monetary policies increase.
By Choi He-suk (cheesuk@heraldcorp.com)
