Korean Korean concerns about the impact of central bank interest rate will be the national economy

 Korea raised interest rates many people are worried about this, that will further increase the domestic debt burden. According to the Korean financial industry, recently released statistics, as of the third quarter of last year, South Korean household debt totaling 770 trillion won, since 2000, the average annual increase of 12%. LG Economic Research Institute of Korea believes that if the benchmark interest rates by 1 percentage point, personal interest payments go up about 5.5 trillion won. Central bank rate hike will not only increase the interest burden of households and businesses, but also to the overall economic impact. Especially low-income financial assets in the debt ratio is too large, the interest burden is relatively high, will lead to deteriorating financial situation. Korea Institute of Finance that the scale of South Korean household debt has reached very serious proportions, the government should gradually raise interest rates, reduced liquidity, while providing support to low-income strata.

for the background and reasons for raising interest rates, Bank of Korea has made Jin Zhongxiu Description: With the global economy continues to improve, the international raw material prices and rising domestic wages, the inflation faced by South Korea pressure continues to increase. Korea National Statistical Office released data show that South Korea last year's consumer price index rose 2.9%, lower than the anticipated 3%, but fresh food prices was as high as 21.3%, marking the highest since 1994. Especially cabbage, radish, flour and other daily necessities of life people in the rate of increase in food prices is even more alarming, on January 11 this year as the benchmark, the price rose 95% over last year, 41% and 32.6%. In addition, South Korea, the past year, gasoline prices also rose more than 10%, the price is close to 1,900 won per liter (1 U.S. dollar equals 1,115 won), gasoline prices triggered a chain reaction. Therefore, the Bank of Korea in the future will focus on monetary policy on inflation.

1 13, South Korean central bank - the Bank of Korea raised its benchmark interest rate by 0.25 percentage point to 2.75%, Bank of Korea since it is the third time since last July raised its benchmark interest rate. Bank of Korea will explain the reasons for the increase in interest rates to curb inflation, but Korea has a lot of worries on this sound.



for future monetary policy, Bank of Korea, Korea currently has two voices. One is that the Bank of Korea should further raise interest rates to stabilize prices. Another view, the Korean government to stabilize prices through other administrative means, rather than raise interest rates, or slow economic growth, this will bring more problems. Mang newspaper reporter in South Korea September morning

order to stabilize prices, in addition to the Bank of Korea raised interest rates, the South Korean Ministry of Finance, Planning, Ministry of Knowledge Economy, the Administrative Security Department and other departments are also 13 co-launched the in principle, increase the first half of electricity, gas charges, housing rent, utility bills, education fees, food processing and petroleum products such as the cost of the project to monitor and reduce tariffs on goods imports.