BOK's Lee: yield differential with US not cause of financial stability

Bank of Korea's decision to keep interest rates unchanged at 1.5 percent in October was not unanimous, Governor Lee Ju-yeol told a news conference after the meeting on Thursday and added further that the widening yield differential with the US is not the cause of financial instability.

Key points (Source: Reuters)

• Sees 2018 growth at 2.7 pct vs 2.9 pct seen previously.
• Sees 2019 growth at 2.7 pct vs 2.8 pct seen previously.
• Sees 2018 inflation at 1.6 pct vs 1.6 pct seen previously.
• Thursday's interest rate decision was not unanimous.
• Board member lee IL-houng was dissenter to Thursday's rate decision.
• Board member Koh Seung-beam was dissenter to Thursday's rate decision.
• Yield differential with US not cause of financial instability.
• Financial imbalances cannot be resolved by monetary policies alone.
• Major outflow from local bond market unlikely.
• New growth outlook of 2.7 pct for this yr factored in Q2 growth.
• Household debt growth should be lowered.
• It's time to pay more attention to financial stability.