BOk “Supplementary budget, Inflation impact not significant…Need for swift execution”

The Bank Of Korea In Sync With The Government On Supplementary Budget (Source: Yonhap News)

The Bank Of Korea stated that the inflationary impact of the first and second supplementary budgets (Supplementary Budget) is limited, emphasizing the government's rapid execution.

On The 12th, The Bank Of Korea, in response to a query from Jo Kuk Innovation Party's Choo Kyu-geun, stated, "The supplementary budget to boost domestic demand should be pursued rapidly, and it is crucial to increase the actual execution rate." Choo mentioned the crisis situation of self-employed individuals and small business owners, arguing, "A proactive supplementary budget of at least 20 trillion won is necessary."

Regarding the scale of the supplementary budget, The Bank Of Korea stated that "it is a matter that needs to be discussed with the National Assembly and the government, considering the economic situation and fiscal conditions." However, on the impact on inflation, it was analyzed that "the impact on this year's prices is expected to be limited, and it will only be a slight upward factor for next year's inflation rate."

This is interpreted as a statement that supports the government's position that a balance between economic stimulus and price stability should be considered and is expected to influence political pressure on the pace of policy implementation.