Photo : YONHAP News
The Bank of Korea(BOK) says it now has more room to focus on the domestic economy and inflation when it sets monetary policy, in light of a recent decision by the U.S. Federal Reserve to cut interest rates.
The central bank delivered the assessment Thursday during a meeting to consider the effects of the U.S. rate cut on domestic and foreign financial markets.
Participants expressed the view that the Fed lowered its key rate to a level that aligns with market expectations.
Chairing the meeting, BOK Deputy Governor Ryoo Sang-dai said the pivot in U.S. monetary policy should have a positive effect on South Korea’s foreign exchange market by alleviating volatility.
The deputy governor vowed to enhance monitoring of the market, considering how monetary policy in major countries and geopolitical risks such as the U.S. presidential election and the crisis in the Middle East might expand volatility.
Following a two-day meeting of the Federal Open Market Committee, the Fed said in a statement Wednesday that it would lower the target for its key lending rate by zero-point-five percentage points to the range of four-point-75 percent to five percent.