SEOUL, KOREA - The Bank of Korea's nominee-governor Lee Ju-yeol, a former senior deputy governor at the central bank, stressed the balance between inflation and growth in a National Assembly hearing on March 19. Throughout the session, Mr. Lee maintained a neutral stance without revealing what he has in mind.

 

During the four-year period from 2009 and 2012 as a member of the Monetary Policy Committee in the central bank, he was known for not taking any of the hawkish or dovish side. At the time, he was in a position difficult to express his own views as a deputy governor assisting the governor. In the hearing, he said, "I believe the role of governor must be different from that of deputy governor," hinting that he would be more assertive in the post of central bank governor.

 

As can be seen in the remarks, "It is necessary to strike a policy balance between inflation control and growth encouragement" and "When deciding on interest rate levels, one must take into account a variety of variables including inflation rate, economic activity, and financial market conditions, as well as household debt balance," he was vague about his policy preference.

 

Even to a question "What would you do when policy goals are in conflict" he answered, "Both the administration and the central bank have what they are supposed to do. Within the limit of maintaining the neutral stance, the bank will work with the administration to find an optimal solution."