National audit of Bank of Korea
'Fiscal support crucial amid rate pressures'
Bank of Korea Governor Shin Hyun-song said Monday he would conduct independent monetary policy "without any wavering."
Shin made the remarks at the National Assembly's Finance and Economy Planning Committee national audit of the Bank of Korea, responding to a question from People Power Party lawmaker Kim Sang-hoon about alleged collusion between the government and the central bank.
On criticism of a disconnect between fiscal and monetary policy, Shin said higher interest rates hit vulnerable borrowers hardest and that fiscal support was essential. "When interest rates rise, it is particularly the most vulnerable borrowers who face the greatest hardship," he said. "Fiscal policy support is truly important."
He added that the government had already announced policies targeting vulnerable borrowers as part of its second-half economic growth strategy this year. "We are communicating closely with the government in this way," he said.
kimstar@heraldcorp.com
