Bank of Korea chief says Fed's shift eased uncertainties; sees no rate cut for Korea yet

SEOUL (Reuters) - South Korea's central bank chief said on Thursday the U.S. Federal Reserve's decision to abandon projections for any interest rate hikes this year eased uncertainties for Korean policymakers.

Reuters March 21, 2019 07:05:19 IST
Bank of Korea chief says Fed's shift eased uncertainties; sees no rate cut for Korea yet

Bank of Korea chief says Feds shift eased uncertainties sees no rate cut for Korea yet

SEOUL (Reuters) - South Korea's central bank chief said on Thursday the U.S. Federal Reserve's decision to abandon projections for any interest rate hikes this year eased uncertainties for Korean policymakers.

Bank of Korea (BOK) Governor Lee Ju-yeol also said it is still too early to discuss cutting interest rates in Asia's fourth largest economy, due to uncertainties stemming from a slowing Chinese economy and Brexit.

"It's not right time to discuss easing of policy rates yet," Lee told reporters, adding that the BOK's current policy is accommodative enough to support South Korea's economic growth.

The Fed on Wednesday brought its three-year drive to tighten monetary policy to an abrupt end, abandoning projections for any interest rate hikes this year amid signs of an economic slowdown, and saying it would halt the steady decline of its balance sheet in September.

Last month, the BOK kept the seven-day repurchase rate at 1.75 percent.

(Reporting by Joori Roh, Cynthia Kim; Editing by Shri Navaratnam)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.