The economic indicators...Bank of Korea struggles to block 'actual theory'

[Anchor]
Recently, various economic indicators such as economic growth, production, and consumption have been bad, leading to widespread practical theories that the Bank of Korea should have cut interest rates earlier than in October.

The Bank of Korea is blocking the practical theory, saying that the entire Korean economy has not become difficult, but the view on it is cold.

Reporter Ryu Hwan-hong reports.

[Reporter]
In the comprehensive parliamentary audit of the Bank of Korea by the National Assembly's Strategy and Finance Committee, the BOK's practical theory of lowering the benchmark interest rate emerged.

Even ruling party lawmakers mentioned practical theory as the economic growth rate in the third quarter shocked the economy to 0.1%, and production and consumption growth in September slowed.

[Lee Jong-wook / People's Power: KDI has argued that interest rates need to be cut to recover domestic demand since the first half of the year. However, since the actual growth rate in the third quarter was only 0.1%, wouldn't it have been better if the Bank of Korea had cut its key interest rate a month or two earlier?]

[Lee Chang-yong / Governor of the Bank of Korea: I agree with the KDI analysis on the difficulty of being self-employed, but it is difficult to agree that the economy as a whole has become very difficult, which is why we are lowering interest rates later than the KDI says because we are considering financial stability.]

In a special lecture invited by Sogang University, Governor Lee also explained that the economic growth rate in the early 2% range is better compared to the 0-1% growth rate of most developed countries.

[Lee Chang-yong/President of the Bank of Korea: When the world grows 4-5%, 2% is low, and when the world grows 0%, we are high in 2%.]

Lee Soo-hyung, a member of the Bank of Korea's Monetary Policy Committee, also told reporters on a business trip to the U.S. and refuted the theory of a rate cut, saying, "It's like people who don't take responsibility are asking Kim Yu-na why she won a silver medal."

However, experts are critical of the BOK's refutation of the practical theory, as even export growth, which supported the Korean economy alone, shows signs of slowing down despite sluggish domestic demand.

[Juwon / Head of Economic Research at Hyundai Research Institute: Before the Fed lowered interest rates, most countries in the world started lowering rates first. The Bank of Korea failed to lower interest rates because it was wary of the U.S. Fed, but it has been thinking about the good export economy.

The Bank of Korea's benchmark interest rate is determined by seven full-time members of the Monetary Policy Committee, including the governor.

Since there are many authorities and benefits but no responsibilities, even if there is a slight loophole in their policy-making, the outside gaze is bound to be sharp.

I'm YTN's Ryu Hwan Hong.