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S Korea's cenbank and financial regulator pledge to address financial imbalances

S Korea's cenbank and financial regulator pledge to address financial imbalances

FILE PHOTO: A man gets on a bicycle in front of the Bank of Korea in Seoul August 9, 2012. REUTERS/Kim Hong-Ji

SEOUL : The leaders of South Korea's central bank and financial regulator met on Friday and agreed to work closely to address imbalances in the financial system and to overcome the COVID-19 crisis, a joint statement showed.

It was the first meeting since Koh Seung-beom, a former member of the Bank of Korea's (BOK) monetary policy board, took office as chairman of the Financial Services Commission last month.

BOK Governor Lee Ju-yeol expressed concerned about surging asset prices and household debt, adding that monetary policy and macroprudential policies need to work together to address such issues, the statement said.

The two also agreed to monitor changes made by global policymakers such as the tapering of the Federal Reserve's bond purchase programme and potential rate hikes around the world.

The BOK raised its policy rate from a record low last week, becoming the first major Asian central bank to shift away from pandemic-era monetary settings as ballooning consumer debt created new threats for the economy.

(Reporting by Joori Roh; Editing by Edwina Gibbs)

Source: Reuters

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