As concerns grow over a slowing global economy... the U.S. Fed has slashed interest rates for the second time this year.
South Korea's central bank chief said this morning that the rate cut was expected,... and that it won't significantly impact the BOK's own rate policy for now.
Yoon Jung-min tells us more.
Following a two-day policy meeting,... the U.S. Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points,... to a range of 1-point-seven-five percent to 2-percent.
The cut comes just seven weeks after the Fed went ahead in July with its first rate cut in 11 years.
"Today, we decided to lower interest rates. As I will explain shortly, we took this step to help keep the U.S. economy strong in the face of some notable developments, and to provide insurance against ongoing risks."
Fed policymakers voted seven to three in favor of lowering rates.
With a lower unemployment rate and improving consumer sentiment, some saw the U.S. economy as on the road to recovery,... while others focused more on downside risks such as the U.S.-China trade spat.
"I think the effect of the rate cut this time surely trigger the inflation pressure to go up, reaching the 2 percent target rate. Also, for business investments, rate cut is quite a good news for the U.S. economy and also for the exports."
At a press conference Wednesday,...Powell said further cuts would be appropriate if the economy does turn downward, but suggested he doesn't think the Fed needs to keep cutting rates.
The Fed's monetary policy committee was also divided over further rate cuts. Of all 17 policymakers,... seven expect a third rate cut this year,...five see the rate remaining unchanged,... while another five expect a hike.
However, President Trump,... who has been pressuring the Fed to take more sweeping cuts... slammed the decision,... saying Fed Chairman Jerome Powell and other Fed policymakers had again failed to meet his expectations.
Bank of Korea Governor Lee Ju-yeol said the Fed's rate cut happened as the market had predicted.
Lee told reporters on his way to work Thursday morning that the decision overnight would not significantly change the BOK's monetary policy.
When it comes to rate cuts by the Bank of Korea,... Lee said it's important to monitor external risks, such as the U.S.-China trade war and rising tensions in the Middle East.
Yoon Jung-min, Arirang News.
