BOK Holds Monetary and Financial Policy Team Meeting on US Fed Interest Rate Cut

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea held a meeting of the Monetary and Financial Measures Task Force on the morning of the 4th to assess the market impact of the Federal Reserve's (Fed) surprise interest rate cut.

The Bank of Korea convened the meeting at 8:20 a.m. in the main building's large conference room, chaired by First Vice Governor Yoo Sang-dae. Attendees included First Vice Governor Park Jong-seok, the Director of Monetary Policy, the Director of the International Department, the Director of the Financial Market Department, the Public Relations Officer, and the Head of Investment Management.

On the 3rd (local time), the Fed cut its benchmark interest rate by 0.50 percentage points to an annual range of 1.00?1.25%. This is the first time since the 2008 financial crisis that the Fed has lowered rates outside of a regular meeting. The decision appears to be a response to market shocks caused by the spread of the novel coronavirus disease (COVID-19).

Accordingly, market expectations are growing that the Bank of Korea will soon follow with a rate cut. The Bank of Korea will decide on the benchmark interest rate at the Monetary Policy Committee meeting on the 9th of next month.

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