Finance Minister Koo Yun-cheol, left, and New Bank of Korea Gov. Shin Hyun-song shake hands during a meeting at the Bankers' Association Building in Seoul, Thursday. Yonhap
New Bank of Korea (BOK) Gov. Shin Hyun-song and Finance Minister Koo Yun-cheol agreed Thursday to strengthen policy coordination amid heightened market volatility stemming from the ongoing Middle East crisis, the central bank said.
Shin and Koo underscored the need during their first meeting since Shin took office Tuesday.
"As the situation in the Middle East is still unfolding, and given the tension between growth and inflation, monetary and fiscal policies need to be conducted in a coordinated manner," Shin said.
"I am very pleased to have this opportunity to directly share our assessments of the economic situation. I will stay in frequent contact to discuss current issues, as well as institutional improvements and structural reform," he added.
Koo stressed the importance of close communication in conducting fiscal and monetary policies, noting that financial market volatility remains high amid the Middle East crisis.
"The foreign exchange market, in particular, requires closer coordination between the BOK and the finance ministry," Koo said. "Structural reform is needed to boost potential growth. As the BOK has research capabilities, we will make good use of your input and suggestions."
Source: Korea Times News
