if we delay the policy shift for too long, it could weaken the recovery of domestic demand and cause market unrest driven by factors such as a continued rise in loan delinquency rates. on the other hand, if we shift the policy stance too early, the slowdown in inflation will decelerate, exchange rate volatility will increase, and the growth in household debt will accelerate. as we enter the final stretch of the fight against inflation, we need to make delicate and balanced judgments that take these trade - offs into account. as highlighted in a recent blog post by the bank of korea's 1 / 5 bis - central bankers'speeches monetary policy department, it is time to recall the principle of, " festina lente, " which means, " make haste slowly, " a maxim first and foremost advocated by roman emperor augustus in policymaking ( park & sung, 2024 ). the rough waves of steep inflation and the big rate hikes seem to have somewhat subsided. however, we are now facing yet another challenging period that requires us to navigate with even greater precision to avoid any hidden rocks lurking beneath the surface. it is at times like this that the outcomes of policy operations tend to differ country by country, clearly revealing the true capacity of each central bank. therefore, we should work to enhance the accuracy of our economic forecasts with a modest attitude and carry out policy operations with more calibration, while comprehensively monitoring risks across various scenarios. in addition to successfully conducting monetary policy, the bank of korea has many projects to complete going forward. first, as planned, from august we will publish our economic forecasts more frequently, on a quarterly basis instead of twice a year as at present. this will be a chance to improve the accuracy of our forecasts and to enhance communication with market participants. second, regarding the disclosure of the views of the monetary policy board members concerning the outlook for the policy rate over the next three months, we will review the effectiveness, as well as the pros and cons, of this approach and mull over ways to improve it with the mpb members. third, the cd rate is still commonly used in practice, even though it is no longer representative as a benchmark interest rate due to its significant decline in trading volume in the short - term money market. by encouraging financial product traders to use the risk - free reference rate ( kofr ), which is calculated based on actual transactions, as the benchmark instead of

has been successful in fighting inflation because politicians were wise enough to make the bundesbank independent. at the same time the german experience ( along with the experience in many other countries ) shows that the lack of fiscal rules may lead to ever increasing public debt. hence, the institutional set - up for emu, which comprises not only an independent ecb and independent national central banks but also the stability and growth pact, can be seen not only as an adoption but also as an improvement of the german practice before the introduction of the single currency. this approach should lead to a more sustainable path of public finances and will hopefully limit conflicts between fiscal and monetary policy. with this hope i would like to conclude my opening remarks.