Fiscal spending not at odds with monetary policy if it boosts growth, BOK chief says

Bank of Korea Governor Shin Hyun-song pushed back Thursday against concerns that the government's expansionary fiscal policy is out of step with the central bank's monetary tightening, saying the two need not conflict if fiscal spending is channeled into investment that lifts potential growth.

Speaking at a press briefing on the monetary policy outlook Thursday morning, Shin said whether fiscal and monetary policy are at odds "seems to depend on the state, scale and purpose of fiscal spending."

"The principle is relatively clear: can fiscal policy raise the growth rate?" he said. "If so, it can actually move in a direction that supports monetary policy."