BOK chief expects US rate hike soon

By 박윤아

Published : Aug. 30, 2016 - 11:09

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[THE INVESTOR] Bank of Korea Gov. Lee Ju-yeol said on Aug. 30 that there is a heightened possibility that the US Federal Reserve could raise its interest rates.

The head of South Korea’s central bank made the comment in a meeting with leading economists and scholars on the current economic conditions, citing recent remarks by Federal Reserve Chair Janet Yellen.

Last week, Yellen said the Federal Open Market Committee continues to anticipate that gradual increases in the federal funds rate will be appropriate over time to achieve and sustain employment and inflation near statutory objectives.

Bank of Korea Gov. Lee Ju-yeol

“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said in a symposium in Jackson Hole, Wyoming.

Lee also said it is meaningful that South Korea’s economy has received a positive assessment, citing global credit appraiser Standard & Poor‘s recent upgrade of South Korea’s sovereign rating.

S&P raised South Korea’s sovereign rating one notch to a record high of “AA” from “AA-” earlier this month.

(theinvestor@heraldcorp.com)

BOK chief expects US rate hike soon

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