BOK chief warns U.S. rate hike could trigger market uncertainty around world
- 6 years ago
The governor of South Korea's central bank is warning that monetary policy tightening in advanced markets could trigger a rapid capital outflow from emerging markets... and result in global market instability.
Speaking at the Bank of Korea's International Conference on Monday, Lee Ju-yeol said the Federal Reserve's rate hike policy and the strengthening U.S. dollar are already causing financial uncertainty in some emerging markets.
His comments come as the Fed is expected to raise U.S. rates again next week.
Citing how closely nations' financial markets and trade are connected, Lee said the chain of market effects could also affect South Korea's financial market.
To ensure safety, the BOK chief said he will cooperate closely with macroeconomic policymakers.
Speaking at the Bank of Korea's International Conference on Monday, Lee Ju-yeol said the Federal Reserve's rate hike policy and the strengthening U.S. dollar are already causing financial uncertainty in some emerging markets.
His comments come as the Fed is expected to raise U.S. rates again next week.
Citing how closely nations' financial markets and trade are connected, Lee said the chain of market effects could also affect South Korea's financial market.
To ensure safety, the BOK chief said he will cooperate closely with macroeconomic policymakers.