Bank of Korea Governor Rhee Chang-yong dismissed the idea of faster interest rate cuts to boost consumption, reiterating his view that the central bank will be cautious in setting the pace of easing after last week’s long-awaited policy pivot.
Rate cuts are “no panacea” and there are other structural headwinds that weigh on spending, Rhee told lawmakers on Monday, during a parliamentary audit of the central bank. He didn’t say what those headwinds are.