Nominee for Governor of the Bank of Korea: Current interest rates are close to neutral levels, monetary policy does not need major adjustments.

Shin Hye-sung, the nominee for Governor of the Bank of Korea, stated that based on a series of evaluations, the current policy interest rate in South Korea is generally neutral, indicating that there is currently no urgent need for a significant adjustment to monetary policy. He said that the recent weakening of the South Korean won is mainly due to external factors, including rising oil prices and exacerbated risk aversion caused by tensions in the Middle East. Shin emphasized that monetary policy should be evaluated in a broader context, pointing out that there is significant uncertainty in estimating the neutral interest rate, and considering the overall financial conditions and policy impacts.