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South Korea's central bank chief nominee sees "communication problem" in hike

Published on Mar 19, 2014 10:10 AM
Lee Ju-yeol, the nominee to be the next chief of South Korea's central bank said on March 19, 2014, there was a communication problem when the Bank of Korea unexpectedly cut interest rates in May last year. -- FILE PHOTO: REUTERS 

SEOUL (REUTERS) - The man nominated to be South Korea's next central bank chief emphasised on Wednesday the need to improve communication with financial markets, effectively accepting broad criticism of the bank's credibility.

Nominee Lee Ju-yeol, who had worked at the Bank of Korea for 35 years, made the admission before a parliamentary confirmation hearing.

"I think there was a communication problem," said Lee, commenting on a surprise decision last May to cut interest rates.

Outgoing Governor Kim Choong-soo, who was a close aide of former President Lee Myung-bak and had no previous work experience at the central bank, has been criticised for giving in too easily to pressure from the government.

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