Korea's finance ministry says... the country's recovery momentum is NOT strong enough,... pointing to a need for more stimulus measures.<br />With the government pledging to pour money into the economy in the first half of this year,... all eyes are on whether the central bank... will cut its key rate.<br />Hwang Ji-hye has the details. Korea's major economic indicators were all down this year.<br />Output, consumption and exports all plunged,... while consumer prices would also have marked a drop... if it were not for a tobacco price hike. <br />The finance ministry is expressing concerns,... saying the country's recovery momentum is still weak. <br />It adds... that lingering uncertainties abroad... like a weak Japanese yen... and a possible rate hike by the U.S. Federal Reserve... also pose a threat to the domestic economy. <br />To prop up growth,... the government has announced a 9-billion U.S. dollar stimulus package for the first half of this year... and called on the corporate sector to raise their wage levels, which will in turn boost domestic demand. <br />Given the efforts made by the government,... market expectations are mounting for the central bank to cut its key rate in the coming months. <br /><br /><br />"There's a high possibility that the BOK will cut the rate in April as it revises down its growth outlook for the Korean economy."<br /><br /><br />The Bank of Korea will set its key rate for this month on Thursday.<br />Attention is now focused on the central bank's next move,... as the prospect of another rate cut also prompts concerns about the country's snowballing household debt.<br />Hwang Ji-hye, Arirang News.
