Against this backdrop, the Bank of Korea is operating the Base Rate at 1.25% after two rate cuts last year, in July and October, with a view to supporting economic recovery and easing the downward pressure on inflation. 1 / 8  Dear members of the Bank of Korea!
It is widely acknowledged that unconventional monetary policy measures, including the PSPP, have unintended consequences. In this regard, members of the Executive Board of the ECB have discussed potential negative spillovers. Indicatively, after the start of the programme, Benoît Coeuré3 highlighted potential side effects to equity and real estate markets, as well as risks of emergence of asset price bubbles.