Injecting liquidity while raising interest rates consecutively—it is the worst combination

While the government is planning its first-ever expansionary budget in the 800 trillion won range based on tax revenue from the semiconductor supercycle, the Bank of Korea raised the base interest rate again today from 2.75% to 3.00%. This marks the second consecutive month of hikes following July, a so-called "back-to-back" tightening. It essentially means that for two months straight, one side is injecting money while the other is tightening the money supply, creating a complete lack of coordination.
With household debt ratios already high, consecutive interest rate hikes will cause the interest burden on borrowers to skyrocket. Furthermore, even the future outlook from the Monetary Policy Board members is trending upward toward 3.25% and 3.50%, leaving the possibility of additional hikes open. Since the structure is such that the Bank of Korea keeps applying the brakes just as the government tries to stimulate the economy through fiscal policy, the policy effects cancel each other out, leaving ordinary citizens to bear the full brunt of the interest burden. This combination of the Lee Jae-myung administration and the BOK Governor is the worst, starting with the timing.