Central bank chief nominee underlines 'insight' on changes in int'l order to respond to rising uncertainty

All News 08:36 March 29, 2022

SEOUL, March 29 (Yonhap) -- The nominee for the new central bank chief on Tuesday underlined the importance of having "insight" on any changes in international order to better respond to rising external uncertainty.

Rhee Chang-yong made the remarks sent to reporters before leaving Washington, D.C. for Seoul for a confirmation hearing. He was nominated as the new chief of the Bank of Korea last week while serving as director of the Asia and Pacific department at the Washington-based International Monetary Fund (IMF).

"In short term, risks for the economy and inflation are growing due to such factors as the United States' monetary policy normalization, the spread of the omicron and the Russia-Ukraine war and slowing Chinese economy," Rhee said.

"It has become important to have insight on how the broad framework of international order, such as relations among the U.S., China and Russia, will be shaping up."

This undated file photo shows Rhee Chang-yong, director of the International Monetary Fund's Asia and Pacific department, whom President Moon Jae-in nominated as the new head of the Bank of Korea (BOK) on March 23, 2022. (Yonhap)

Rhee also reiterated that he will carry out monetary policy by taking into consideration growth, inflation and financial stability "in a balancing manner," a remark interpreted that he might be less aggressive in raising interest rates in consideration of economic growth.

Rhee is known for his long experience and deep understating of financial markets and economic policy as he worked at global institutions, including the Asian Development Bank and the IMF, and served as vice chief of the Financial Services Commission, South Korea's top financial regulator.

His appointment comes as the central bank is grappling with rising inflation pressure driven by global supply disruptions and rising demand from consumption recovery from the pandemic.

He needs to go through a parliamentary confirmation hearing, though it is widely seen as a formality because his formal appointment does not require endorsement from the National Assembly. The date for the hearing has yet to be determined.

Incumbent BOK Gov. Lee Ju-yeol is set to leave office Thursday.

kokobj@yna.co.kr
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