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Now, we're going to move on to Korea's National Assembly...
where the first confirmation hearing in the Bank of Korea's 60-year history is currently
underway. Lee Ju-yeol ,... the nominee for next central
bank governor emphasized the importance of communicating with the market.
Arirang News' Hwang Ji-hye starts us off. Lee Ju-yeol -- a veteran Bank of Korea official
who's been tapped as the next governor -- appeared for a parliamentary confirmation hearing on
Wednesday. There Lee said... that he fully acknowledges
the importance of communicating with the market. He added... that the central bank has to gain
the trust of the people... and that trust comes from the consistency and predictability
of its policies. Lee also conceded that the central bank had
failed to communicate with the market last April.
It left the key rate unchanged,... while the market had high expectations of a rate cut.
The central bank cut the rate by a quarter of a percentage point in May.
In a prepared statement to lawmakers before the hearing,... Lee said... that a rate hike
would NOT put a great deal of pressure on the nation's snowballing household debt problem.
The nominee added... that the central bank's key rate is accommodative... to support the
nation's current pace of economic recovery. Experts say his comments are realistic,...
with many believing the rate has been kept at low levels for too long.
They predict the central bank could act on it in the coming months.
"As the economy enters the second half of the year, the BOK will raise the interest
rate once or twice."
Lee takes office in April,... replacing outgoing Governor Kim Choong-soo, who has been criticized
for a lack of communication with the market during his term.
The BOK faces major challenges at home and abroad like ballooning household debt, financial
instability in emerging markets and uncertainties stemming from the Fed's stimulus tapering.
Hwang Ji-hye, Arirang News.