BOK chief says Fed's rate cut "less accommodative", BOK to respond if economic situation worsens
- 5 years ago
이주열 "美연준, 예상보다 덜 완화적"...한은, 대외여건 나빠지면 추가 통화정책 대응 가능
And responding to the Fed's rate cut... the Bank of Korea has also hinted at further readjustments to Korea's monetary policy.... if things get worse for both the domestic and global economy.
Yoon Jung-min has the details.
South Korea's central bank governor Lee Ju-yeol said the U.S. Federal Reserves' rate cut happened as predicted, although it was less expansionary than what the market had expected.
On his way to work on Thursday morning, Lee said to reporters that Wednesday's rate cut is more like a mid-cycle adjustment to policy, rather than the beginning of a lengthy easing cycle, reiterating what Fed Chairman Jerome Powell said in a news conference after the Fed statement on Wednesday.
Though it was less aggressive than expected, the governor added he is also paying attention to what the Fed will do to sustain the expansion.
When asked about an additional rate cut by the Bank of Korea, Lee said the central bank cannot immediately respond to the latest Fed decision, but will consider economic circumstances inside and outside Korea to decide whether to further readjust its monetary policy.
The central bank earlier lowered the key rate to 1-point-5 percent from 1-point-75 percent in July.
"Since the Bank of Korea cut the key rate ahead of the Fed's move, the bank is not likely to immediately respond and lower the rate again. I think it's more important to look at the economic circumstances because there are many downside risks. Taken together, it may lower the rate once more in the second half of this year."
In a written response to the National Assembly's finance committee on the same day, the Bank of Korea also hinted it may further cut the key interest rate if economic circumstances worsen,... particularly the U.S.-China trade conflict and Japan's export restrictions on South Korea.
Yoon Jung-min, Arirang News.
And responding to the Fed's rate cut... the Bank of Korea has also hinted at further readjustments to Korea's monetary policy.... if things get worse for both the domestic and global economy.
Yoon Jung-min has the details.
South Korea's central bank governor Lee Ju-yeol said the U.S. Federal Reserves' rate cut happened as predicted, although it was less expansionary than what the market had expected.
On his way to work on Thursday morning, Lee said to reporters that Wednesday's rate cut is more like a mid-cycle adjustment to policy, rather than the beginning of a lengthy easing cycle, reiterating what Fed Chairman Jerome Powell said in a news conference after the Fed statement on Wednesday.
Though it was less aggressive than expected, the governor added he is also paying attention to what the Fed will do to sustain the expansion.
When asked about an additional rate cut by the Bank of Korea, Lee said the central bank cannot immediately respond to the latest Fed decision, but will consider economic circumstances inside and outside Korea to decide whether to further readjust its monetary policy.
The central bank earlier lowered the key rate to 1-point-5 percent from 1-point-75 percent in July.
"Since the Bank of Korea cut the key rate ahead of the Fed's move, the bank is not likely to immediately respond and lower the rate again. I think it's more important to look at the economic circumstances because there are many downside risks. Taken together, it may lower the rate once more in the second half of this year."
In a written response to the National Assembly's finance committee on the same day, the Bank of Korea also hinted it may further cut the key interest rate if economic circumstances worsen,... particularly the U.S.-China trade conflict and Japan's export restrictions on South Korea.
Yoon Jung-min, Arirang News.