Lee Ki-hyun, the governor's hawk instinct,

The hawk instinct (governor of rising rates) was caught by the trade dispute between China and the United States.

However, a financial sector official said the MPC meeting scheduled for December 12 would raise the annual interest rate to 1.50.

In mid-October, the US Federal Reserve opened the Federal Open Market Committee (FOMC) to raise interest rates to 1.75% to 2% this year. As a result, the U.S. and U.S. interest rate reversal rate was raised to 0.50 percentage points.

Given domestic and international economic conditions, such as rising domestic prices, the MPC also raised its interest rates this month.

Lee Ki-yeol announces a freezing of the reference rate at the MPC last month

Consumer price inflation has risen 1.5% I took it. Considering that petroleum product prices in Zidan have increased on average by 11.4% YoY, the diagnosis of the financial sector is that the rate of price increase will be even higher. The government was ruling out petroleum products at the end of the year as oil prices and consumer prices exploded in 2011.

Since petroleum products are expected to continue to rise in the second half of the year, the MBM should not increase interest rates The financial sector badyzed. The increase in interest rates will result in reduced lending and business management, which will result in job losses. Households lose income and reduce their consumption, which is bad for businesses.

It is a stumbling block for the governor that the trade war, such as the repression of mutual tariffs in Central America, takes place this month.

US imports into China are expected to decrease by 10%. The Hyundai Research Institute estimated that Korea's exports to China would fall by $ 28.26 billion (31.5 trillion won).

The prospect that the MPC will bind the benchmark interest rate is the key to success

In light of this, the governor said last month that he was going to "revise the". national economy and judge the direction of the policy, "stating:" In the past two months, the default rate of households and businesses has increased. A finance official said: "The BOK announced on December 12 that the revised economic forecast for the year would be lowered to 2.9% this year," he added. "The internal and external situation is far from a rate hike."

He added: "The United States has raised at least two interest rate hikes in the second half," he said, "if the trade dispute in Central America continues, our economy will suffer ".

Meanwhile, the National Office of Statistics (KNSO) announced the month of June an "employment trend".

In May, the increase in the number of domestic workers fell to 70,000 and the number of workers C & # 39; is the first time since the global financial crisis of 2008. The number of workers who had reached 316 000 last year was only 149,000 per month in May this year.