Policy Planning & Coordination Division,
Monetary Policy Department,
The Bank of Korea
Tel : 822-759-4460
Fax : 822-759-4485

Monetary Policy in November 1999
(November  4, 1999)

* Unofficial English translation based on the Korean original that was decided upon by the Monetary Policy Committee on November 4, 1999)

     The real economy has contiued its rapid expansion while consumer prices have been showing a rising trend since August. However, there is a clear need to maintain financial market stability amid Daewoo Group's restructuring and the turnaround of the investment trust companies.

     Taking these factors into consideration, the Monetary Policy Commitee of the Bank of Korea has decided to maintain its current monetary policy stance in November, focusing as in the previous month on stabilizing the financial market.

     Overnight call rate will be maintained at around its current level and liquidity will be supplied in a flexible manner.

     While determined to ensure financial market staility, the Bank of Korea will continually be on the alert to prevent possible internal and external imbalances arising, such as price instability or a deterioration of the current account position. This will be done by keeping a close eye on changes in the real economy and asset prices.

     Efforts to reduce the fiscal deficit, meanwhile, need to be strengthened to cope with an increase in aggregate demand as a result of the continued economic expansion.