The government and the Bank of Korea have “no difference” in their assessment of the latest economic situation, the finance minister said Monday, adding that he expects both to seek “expansionary” measures aimed at bolstering the economic recovery.

The remarks by Choi Kyung-hwan came in response to a question over whether the BOK needs to lower its interest rate to help prop up the economic recovery. Choi was speaking at a TV event with journalists.

“It’s up to the (BOK’s) monetary policy committee to determine interest rates, but we recently confirmed that there is no difference between the government and the central bank in assessing current economic conditions,” Choi said. “At this moment, we also share the need for expansionary measures.

“Given that we have no difference in our economic assessment, I think that (the BOK) will make a decision based on that,” he added.

He, however, said that he is “skeptical” about lowering the borrowing costs too much, saying that economic situations here are different from those in Japan and the United States, where interest rates remain almost at zero.

He also confirmed his policy stance that the government will run its economic policy in an expansionary manner “for the time being.”

“Whether it is fiscal or monetary, we need an expansionary policy for the time being,” he said. “This stance is not limited to the second half of this year but should be in place until next year as well and it could go beyond that if necessary.”

The event was held in order to explain in detail the government’s economy management plan unveiled last week. Choi, who took office in mid-July, said that his economic team will focus its policy priority on boosting domestic demand, stabilizing people’s livelihoods and reforming the overall economic structure.

The government also revised down its growth outlook for this year to 3.7 percent from 4.1 percent, citing the heightened uncertainty facing Asia’s fourth-largest economy at home and abroad. (Yonhap)