Most Popular
-
1
Dongduk Women’s University halts coeducation talks
-
2
Defense ministry denies special treatment for BTS’ V amid phone use allegations
-
3
Russia sent 'anti-air' missiles to Pyongyang, Yoon's aide says
-
4
OpenAI in talks with Samsung to power AI features, report says
-
5
Two jailed for forcing disabled teens into prostitution
-
6
Trump picks ex-N. Korea policy official as his principal deputy national security adviser
-
7
South Korean military plans to launch new division for future warfare
-
8
Gold bars and cash bundles; authorities confiscate millions from tax dodgers
-
9
Kia EV9 GT marks world debut at LA Motor Show
-
10
Teen smoking, drinking decline, while mental health, dietary habits worsen
US rate cut to have positive impact on S. Korean economy: BOK official
By Jung Min-kyungPublished : Oct. 31, 2019 - 15:13
Regarding the US Federal Reserve’s latest decision to cut interest rates, South Korea’s central bank on Thursday said the move will have a positive impact on the local economy, though other factors will be considered for its own rate cut decision.
“On the principle that a US rate cut leads to a rise in stock prices and interest rate cuts, the latest decision is expected to contribute to growth in the global economy,” Yoon Myun-shik, senior deputy governor of the Bank of Korea, told reporters after a meeting at the bank’s headquarters in central Seoul.
“It is also likely to bring some positive effects to our economy,” he added.
On Thursday, the US central bank cut interest rates for the third time this year, by 0.25 percent to between 1.5 percent and 1.75 percent, amid a slowing global economy. Federal Reserve Chairman Jerome Powell also strongly suggested that the rates would remain steady for the time-being.
On the rate cut affecting South Korea’s monetary policy, Yoon said it “could alleviate some concerns surrounding issues such as a capital outflow.”
Experts have voiced concerns of a possible capital outflow after the BOK cut its key rate in July, widening the gap between its own rate and that of the US to a maximum 1 percentage point at the time.
Earlier this month, the BOK had further slashed the key rate to all-time low of 1.25 percent.
But overall, Yoon noted that the latest rate cut is one of many factors to consider in the BOK’s decision-making process. The Fed decision itself is not likely to change the BOK’s cautious stance toward a further rate cut, he explained.
(mkjung@heraldcorp.com)
