Korea’s central bank chief said on Dec. 14 that the latest rate rise by the US Federal Reserve will have little impact on the local financial market, as the move was widely expected.
“The market has long anticipated the Fed‘s base rate increase this month,” Bank of Korea Gov. Lee Ju-yeol told reporters.
“The BOK is focused on the Fed’s pace of rate rises next year and has kept its 2018 outlook unchanged.”
He said the Fed remained less “hawkish” than expected despite an upgrade in growth forecast.
The US central bank raised its key rate by a quarter percentage point to a range of 1.25-1.50 percent on Dec. 13, citing favorable economic conditions.
It suggested there would be three additional rate increases in 2018 and 2019, unchanged from its projections in September.
“The BOK will decide its monetary policy after carefully reviewing every aspect in Korea, including the economy, consumer prices and financial stability risks,” said Lee.
By Alex Lee and newswires (firstname.lastname@example.org