A dissenting vote in the Bank of Korea's decision to keep policy rates steady in January has brought attention to the potential risks facing the economy due to domestic political unrest and changes in U.S. policy.
The minutes from the bank's meeting, released on Tuesday, revealed that board member Shin Sung-hwan was the sole voice advocating for a reduction in interest rates.
In a surprising decision on January 16, the Bank of Korea voted 6-1 to maintain its policy interest rate, indicating a need for domestic political stability before implementing further rate cuts.
Shin Sung-hwan was the only member who advocated for a 25 basis point cut in interest rates on January 16. Despite his dissent, the bank elected to keep its benchmark interest rate steady at 3.00%.
