한은 신현송 “가래 대신 호미로 막았다”…물가 선제 대응 강조

Former Korean Central Bank Governor Han Hyun-song stated that the bank acted preemptively against rising prices by raising interest rates from 2.75% to 3.00%, likening it to stopping a flood with a bucket rather than a dam. This move marked the first time in three years and seven months that the central bank had increased rates twice consecutively, following seven consecutive hikes between April 2022 and January 2023.

The Monetary Policy Direction Decision Document indicated that while the domestic economy is expected to maintain a high growth rate due to strong exports and increased investment, inflation rates are projected to exceed the target level of 2% for an extended period. The central bank also highlighted the risk of financial instability and the need to continue monitoring it while raising the interest rate by 0.25% points.

Governor Han emphasized that pre-emptive action prevents higher costs in the long run and that the timing and extent of monetary policy adjustments should not contradict the government's fiscal policies. The bank projected growth rates for this year at 3.3% and next year at 2.9%, both upward revisions from the previous estimates of 2.6% and 2.1%, respectively.