Bank of Korea (BoK) Governor Rhee Chang-yong addresses the press conference following the central bank’s monetary policy meeting on Thursday.
Key quotes
Thursday's rate decision was unanimous.
Household debt increase in last couple months was faster than expected.
Will manage household debt with micro measures first.
May consider macro policy to tackle household debt, but not for now.
Six members wanted to keep door open for one more hike.
Uncertainty very high regarding US monetary policy.
Too early to talk about rate cut.
Do not want to rule out possibility of rate cut within this year.
Undesirable to comment on whether Korea can cut interest rates before US.
Interest rates at upper end of neutral range or higher.
Foreign exchange rates not at level of concern.
Downgrade in 2024 GDP forecast due to weaker chinese economy.
Can intervene if market volatility increases after us policy meeting in Sept.
Some might argue for more weight on growth, but inflation most important for now.
Also: BoK holds interest rates unchanged at 3.5%, as expected, but drags USD/KRW below 1,330
Market reaction
USD/KRW is holding lower ground near $1,324 despite the dovish remarks from the BoK Governor. The pair is trading 0.28% lower on the day at $1,324.43 at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Fed trims the benchmark rate by 25 bps, US Dollar soares – LIVE
The Federal Reserve (Fed) delivered as expected and cut the policy rate by 25 bps after the last meeting of 2024. Market players price in a hawkish Summary of Economic Projections and an even more hawkish Chairman Powell.
EUR/USD pierces 1.0400 amid a hawkish Federal Reserve
EUR/USD accelerated its slump after the Federal Reserve trimmed interest rates as expected but also released a dot-plot showing lesser interest rate cuts in 2025. The "hawkish cut" boosts demand for the US Dollar.
Gold nears $2,600 after Fed's decision
Gold fell towards $2,600 and trades nearby as the Federal Reserve's hawkish cut sent investors into safety. Demand for the US Dollar outpaces that of the bright metal as US, officials foresee fewer interest rate cuts in 2025.
GBP/USD trims intraday gains and challenges 1.2600
GBP/USD trimmed early gains and fell to fresh intraday lows in the 1.2600 price zone following the United States Federal Reserve's announcement. Financial markets rushed to buy the US Dollar ahead of the Bank of England monetary policy decision on Thursday.
Sticky UK services inflation to come lower in 2025
Services inflation is stuck at 5% and will stay around there for the next few months. But further progress, helped by more benign annual rises in index-linked prices in April, should see ‘core services’ inflation fall materially in the spring.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.