Chief of S Korea's central bank hints at raising key rate

SEOUL, Sept. 10 (Xinhua) -- Chief of South Korea's central bank said Thursday that the bank will likely mull raising the rate, saying the financial market is easing down at a faster rate than the economic conditions.

Lee Sung-tae, governor of the Bank of Korea (BOK), said "the bank will keep up its monetary easing policy," noting that the financial market is easing down to a stronger-than-expected degree.

"Depending on economic conditions, a raise in the key rate may come even when the money market is easing down." Lee said, adding that a raise or cut in the key rate is not a benchmark to tell the status of the financial market.

According to Lee's comment, the BOK is likely to stick to its monetary easing policy with a possible hike in the key rate, South Korea's Yonhap News Agency said.

Although the nation's economy is expected to make a slow-pace recovery down the road, uncertainties and downside risks still linger, which still holds back market confidence in the economic revival, Lee also said.

The most important issue the BOK is facing is how to effectively deal with inflows and outflows of foreign investment, Governor Lee highlighted.

The governor's remark came during a press briefing after the bank's monthly policy meeting.

The BOK decided to keep the nation's key rate interest for September at a record low of 2 percent for the seventh consecutive month.