[Economy PICK] Should we freeze the benchmark interest rate? Should I put it down?The maximum variable is the exchange rate.

[Anchor]
The third issue is whether to freeze the benchmark interest rate? Should I get off?The biggest variable is the exchange rate.

Will the Bank of Korea's benchmark interest rate be set next week?

[Reporter]
Yes, on the 28th, the Bank of Korea's Monetary Policy Committee will decide the base rate.

This is the last decision on the benchmark interest rate this year, and the prospect of a freeze is prevailing at the moment.

{원} Because the won-dollar exchange rate rise variable appeared.

As domestic demand rarely recovers and export growth slows, interest rate cuts are needed, and the Bank of Korea is struggling because a rate cut could further encourage the exchange rate to rise.

The won-dollar exchange rate rose to 1,407.3 won on the 14th due to former President Trump's election shock in the U.S. presidential election.

This is the 14-day average, and the high point was 1,411.3 won.

In April, the exchange rate rose to 1,400 won when Iran attacked Israel, and in seven months, it used a new branch.

As you know well, rising exchange rates help exports.

However, it could raise import prices and re-stimulate consumer prices that have now fallen to the 1% level.

Also, our stock market is in a bad condition now, and foreign investors can get out more because of foreign exchange losses.

These concerns have deepened the Bank of Korea's troubles.

[Anchor]
So, is the prospect of freezing prevails?

[Reporter]
So far, yes.

Even when the BOK's Monetary Policy Committee decided to cut interest rates last month, five of the six members of the Monetary Policy Committee, excluding the BOK governor, believed that interest rates would be frozen for the next three months.

However, the exchange rate situation is worse than then.

Fortunately, the exchange rate, which rose to 1411.3 won, fell to the early 1,390 won range.

There was oral intervention by the government on the 14th, and the so-called Trump trade betting on Trump also calmed down a bit, which dampened the surge in the exchange rate.

Therefore, it seems very important whether the exchange rate will stabilize a little more for the remaining eight days before the Bank of Korea's Monetary Policy Committee.

Last month, the won-dollar exchange rate was 1,351 won during the BOK's Monetary Policy Committee.

If it falls below 1,380 won, if not to that level, the burden on the Bank of Korea will be less.

The IMF, the International Monetary Fund today cut its forecast for the country's economic growth this year to 2.0 percent from 2.2 percent, recommending a rate cut.

Rahul Anand, head of the IMF's mission to Korea, held a press conference this afternoon and called on the Korean monetary authority to gradually cut interest rates.

Lee Chang-yong, governor of the Bank of Korea, is likely to listen to the IMF's advice because he served as the IMF's director of the Asia-Pacific Bureau.