The Bank of Korea is under growing pressure from the ruling Saenuri Party and the government to lower the benchmark interest rate at its meeting scheduled for April 11.

The bank has left the policy interest rate unchanged at 2.75 percent after a 25 basis point cut in October.

Earlier this month, Lee Hahn-koo, floor leader of the ruling party, openly urged the central bank to “play a role in stimulating the economy” by lowering the key interest rate and raising the aggregate lending limit for small and medium-sized companies.

Lee’s comments invited criticism from the main opposition Democratic United Party for encroaching on the independence of the central bank.

Nevertheless, Cho Won-dong, senior presidential secretary for economic affairs, added weight to Lee’s call for a rate cut by saying that it would be better if the bank lowered rates ahead of the government’s planned issuance of bonds to finance a supplementary budget.

If the government sells off a large amount of bonds to create a supplementary budget, it would inevitably drive up interest rates. Cho wanted the BOK to offset the upward pressure by making a rate cut in advance.

Minister of Finance and Strategy Hyun Oh-seok also suggested the need for a rate cut when he said last month that the policy package he would put forward to stabilize the economy should include monetary measures.

It is quite unusual that the ruling party, the presidential office and the Finance Ministry call for a rate cut in unison. This suggests that there is a broad consensus among policymakers of the party and the government that fiscal stimulus alone would not be able to put the nation’s economy back on its normal growth track.

More importantly, it also indicates this perception is not shared by the members of the central bank’s Monetary Policy Committee. Otherwise, there is no need for government and party officials to push the BOK toward a rate cut.

BOK head Kim Choong-soo expressed his displeasure over the pressure on the bank by refusing to attend an economic policy coordination meeting at Cheong Wa Dae last week. When asked why he did not join it, Kim bluntly said that the central bank had its own business to attend to.

It is difficult to tell whether the economy now needs a rate cut. Even if the bank lowers the policy rate, there is no guarantee that it will boost the economy.

But the important point is that the administration and the bank would do well to speak in one voice on this and other matters. Otherwise, they will create uncertainty over economic policies. The two need to resolve their differences and act in tandem.