SEOUL, Jan 6 (Reuters) - South Korea's central bank looks set to leave interest rates steady at a record low for an 11th consecutive month this week but analysts expect it to hint at an increase between February and March.
In a Reuters poll this week, 17 out of 18 analysts surveyed projected no rate change for Friday while a majority of them expected rates to start rising within the first quarter.
Following are key comments that South Korean officials have made on where Asia's fourth-largest economy was headed and on the economic and monetary policy since the Bank of Korea's previous interest rate meeting on Dec.10:
FINANCE MINISTER YOON JEUNG-HYUN, at a meeting with business leaders on Jan. 5:
'It is still premature to implement exit strategies.'
PRESIDENT LEE MYUNG-BAK, in a televised New Year speech on Jan. 4:
'The number one objective of the national policy agenda in 2010 for the Lee Myung-bak government is reviving the economy. And creating jobs is at the heart.'
PRESIDENT LEE, at a cabinet meeting on Jan. 1:
'The word of warning is that it would be best to be cautious about adopting an exit strategy until (the end of) the first half.'
BANK OF KOREA GOVERNOR LEE SEONG-TAE, in a New Year message on Dec. 31:
'(The central bank) needs to adjust the magnitude of monetary policy easing at an appropriate speed and by an appropriate margin while taking into account the domestic and overseas economic and financial conditions.'
AN UNIDENTIFIED BANK OF KOREA BOARD MEMBER, during the Nov. 12 policy meeting, based on minutes released on Dec. 29:
'I think there is a need to discuss normalising interest rates in view of (the effect of) real interest rates staying below or near zero for a long time.'
DEPUTY FINANCE MINISTER NOH DAE-LAE, at a seminar on Dec. 17:
'We can't decide interest rates only on the basis of the pace of growth. Interest rates should consider inflation, employment and investment as well, and the quality of the growth is not good.'
BANK OF KOREA DEPUTY GOVERNOR JANG BYUNG-WHA, at a seminar on Dec. 17:
'Raising rates slightly (from the current record-low level) would not be contradictory to the government's accommodation policy, and it cannot be viewed as tightening.'
FINANCE MINISTRY, in a policy briefing to the president on Dec. 16:
'The temporary counter-crisis measures will be normalised in a gradual way not to create a shock. We will make close cooperation with related agencies to respond promptly to changes in the economy, prices and financial markets.'
((For more stories on South Korean economy, double-click ))
(Reporting by Seo Eun-kyung; Editing by Yoo Choonsik and Neil Fullick)
((eunkyung.seo@thomsonreuters.com; +82 2 3704 5648; Reuters Messaging;eunkyung.seo.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In a Reuters poll this week, 17 out of 18 analysts surveyed projected no rate change for Friday while a majority of them expected rates to start rising within the first quarter.
Following are key comments that South Korean officials have made on where Asia's fourth-largest economy was headed and on the economic and monetary policy since the Bank of Korea's previous interest rate meeting on Dec.10:
FINANCE MINISTER YOON JEUNG-HYUN, at a meeting with business leaders on Jan. 5:
'It is still premature to implement exit strategies.'
PRESIDENT LEE MYUNG-BAK, in a televised New Year speech on Jan. 4:
'The number one objective of the national policy agenda in 2010 for the Lee Myung-bak government is reviving the economy. And creating jobs is at the heart.'
PRESIDENT LEE, at a cabinet meeting on Jan. 1:
'The word of warning is that it would be best to be cautious about adopting an exit strategy until (the end of) the first half.'
BANK OF KOREA GOVERNOR LEE SEONG-TAE, in a New Year message on Dec. 31:
'(The central bank) needs to adjust the magnitude of monetary policy easing at an appropriate speed and by an appropriate margin while taking into account the domestic and overseas economic and financial conditions.'
AN UNIDENTIFIED BANK OF KOREA BOARD MEMBER, during the Nov. 12 policy meeting, based on minutes released on Dec. 29:
'I think there is a need to discuss normalising interest rates in view of (the effect of) real interest rates staying below or near zero for a long time.'
DEPUTY FINANCE MINISTER NOH DAE-LAE, at a seminar on Dec. 17:
'We can't decide interest rates only on the basis of the pace of growth. Interest rates should consider inflation, employment and investment as well, and the quality of the growth is not good.'
BANK OF KOREA DEPUTY GOVERNOR JANG BYUNG-WHA, at a seminar on Dec. 17:
'Raising rates slightly (from the current record-low level) would not be contradictory to the government's accommodation policy, and it cannot be viewed as tightening.'
FINANCE MINISTRY, in a policy briefing to the president on Dec. 16:
'The temporary counter-crisis measures will be normalised in a gradual way not to create a shock. We will make close cooperation with related agencies to respond promptly to changes in the economy, prices and financial markets.'
((For more stories on South Korean economy, double-click ))
(Reporting by Seo Eun-kyung; Editing by Yoo Choonsik and Neil Fullick)
((eunkyung.seo@thomsonreuters.com; +82 2 3704 5648; Reuters Messaging;eunkyung.seo.reuters.com@reuters.net)) Keywords: KOREA ECONOMY/RATES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.