Short comment
Many research analysts addressed that BOK could raise their rate at this meeting, but they were wrong. The institution freezed the rate at 1.50%. Sluggish indices are putting a strain to the rise, and some economists are suggesting that the rise would not happen in the rest of this year.
There is a political issue relavant with the rate nowadays. A question is addressed by the opposition parties: about change of president of Statistics Korea. The former president had resisted the order from the Blue House, and now she gone. New president of the institution, Kang shin-wook, is a strong supporter of income-led growth. In fact, Mr. Kang is an expert of social welfare, not statistics. Some politicians, employees of the institution and press are strongly implying the possiblility of manipulating the indices to direction of being in favor of the policy, which could be much better than the reality is.
Whether the manipulations are realized or not, good indices could lead to rises of the rate faster than expected. We need to see the situation more.
Many research analysts addressed that BOK could raise their rate at this meeting, but they were wrong. The institution freezed the rate at 1.50%. Sluggish indices are putting a strain to the rise, and some economists are suggesting that the rise would not happen in the rest of this year.
There is a political issue relavant with the rate nowadays. A question is addressed by the opposition parties: about change of president of Statistics Korea. The former president had resisted the order from the Blue House, and now she gone. New president of the institution, Kang shin-wook, is a strong supporter of income-led growth. In fact, Mr. Kang is an expert of social welfare, not statistics. Some politicians, employees of the institution and press are strongly implying the possiblility of manipulating the indices to direction of being in favor of the policy, which could be much better than the reality is.
Whether the manipulations are realized or not, good indices could lead to rises of the rate faster than expected. We need to see the situation more.
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