Korea’s central bank slashed the benchmark interest rate by a 25 basis point to 3.25 percent on Friday, delivering its first rate cut since May, 2020.
In volatile times, credibility in policymaking should not be compromised.
If the rates fall, it would be great to buy a house, but nothing more than that.
The main Kospi bourse climbed 17.52 points, or 0.64 percent, to 2,742.14, rebounding from a 1.03 percent drop the previous session ahead of a rate decision by the U.S. Federal Reserve.
Finance Minister Choi Sang-mok urged financial authorities to carefully monitor and prepare responses to the rate decisions by both the U.S. Federal Reserve and the Bank of Japan.
The central bank voted unanimously to keep the rate at 3.50 percent while indicating that a cut is unlikely in the first half of the year.
Korea’s finance minister pledged to stay vigilant on growing uncertainties in the country’s economy and financial markets as the timing of interest rate cuts in key countries remains uncertain.
Korea's central bank will maintain its current monitory tightening stance despite the U.S. Fed pivoting toward lower interest rates.
Monetary tightening can cause immediate pain. But a loose policy can prompt a bigger hardship down the road.
Korea JoongAng Daily Sitemap
