BOK Nominee Shin Sees Solid Dollar Liquidity, Limited Inflation Risk

Shin confirmed dollar liquidity is solid, supported by foreign investor inflows into the bond market through FX swaps, which mitigates past concerns about financial instability linked to a weaker won. He acknowledged rising oil prices and the Middle East situation as factors adding upward pressure to inflation and posing downside risks to growth.

However, Shin assessed the supplementary budget's impact on inflationary pressure as "very limited," viewing it as necessary policy easing for vulnerable sectors. Regarding monetary policy, including the benchmark rate, Shin emphasized a flexible approach, dependent on Middle East developments and monetary policy paths in other advanced economies, rejecting a "hawk-dove" binary characterization.

He also dismissed major concerns about the overseas private credit market, noting its size is less than $2 trillion compared to other financial sectors. Shin expressed respect for current BOK Governor Rhee Chang-yong's achievements but declined to commit to continuing the six-month interest-rate dot plot, stressing the importance of market communication.