SEOUL: The head of South Korea’s central bank said on Tuesday (Aug 30) his bank’s financial policy stance would not change after Federal government Reserve Chair Jerome Powell said a week ago the US economy will require tight monetary policy “for some time”.
Financial institution of Korea Chief excutive Rhee Chang-yong stated his bank would certainly closely watch the particular Fed’s policy choices as the volatility within global markets has grown, the central financial institution said in a text message to reporters.
“(Powell’s speech) had not been much different from what the Bank of Korea thought when it kept a meeting to set rates of interest on Aug twenty five, and therefore, there will be simply no change in our plan management, ” Rhee was cited as saying.
Danger assets and bonds were hit simply by broad selling right after Powell said upon Friday the Fed would continue to tighten up monetary policy to create down inflation even as those rate improves cause pain for families and businesses.
Rhee told Reuters in an exclusive job interview soon after Powell’s speech his bank would not likely end its tightening cycle before the Fed.
The BOK was among the first central banks to abandon pandemic-era financial stimulus, raising the key policy rate by 2 percentage points since August last year to second . 5 per cent.