monetary policy-minutes
monetary policy-minutes
One BOK board member voiced need to raise key rate in January meeting 
   SEOUL, Feb. 6 (Yonhap) -- One member of South Korea's central bank policy board told last month's monetary meeting that there is a need to raise its key rate, according to minutes from the January meeting released Tuesday.
   The monetary policy committee of the Bank of Korea (BOK) left its base rate steady at 1.5 percent last month, and the decision was unanimous. The BOK lifted its key rate, marking the first rise in more than six years.
   "If the current pace of monetary policy easing continues, it would limit efforts to lower risks of financial imbalance, including the control of household debt," one member told the meeting, according to the minutes. 
   "It is still valid that there is a need for further adjusting monetary policy following last November's rate hike," the member claimed.
   Still, the minutes suggested that the BOK is keeping tabs on weaker inflationary pressures.
   Less inflationary pressures can give the BOK more time before further tightening borrowing costs, analysts here said. 
   The BOK set its target inflation at 2 percent for last year. 
   South Korea's annual inflation rate eased in January, marking the slowest gain in 17 months.
   The country's consumer price index climbed 1 percent last month from a year earlier compared with the previous month's 1.5 percent on-year gain, according to data compiled by Statistics Korea.
   From a month earlier, the index also increased 0.4 percent in January.
   BOK Gov. Lee Ju-yeol's four-year term is set to end March 31, and some analysts expect the BOK to raise the base rate after a new governor is appointed.