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Monetary Tightening Concerns and Inflation Targets
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Bank of Korea's Governor Rhee Chang-yong expresses concerns about prolonged monetary tightening, citing commercial real estate loan integrity and a local developer's debt restructuring as warning signs. The central bank's inflation target of 2% remains valid, but fine-tuning is necessary to determine the optimal interest rate path and the length of tightened monetary policy. President Yoon Suk Yeol expresses confidence in easing inflation pressure and supporting vulnerable groups like small business owners.
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How does the confidence of President Yoon in easing inflation pressure and supporting vulnerable groups affect market sentiment and economic growth?
How might prolonged monetary tightening impact the stability of the financial system and the economy?
What strategies could the central bank employ to fine-tune the interest rate path and length of tightened monetary policy?
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