The decision of the Federal reserve system of interest rate hike in Seoul called expected, noting that the key factor will be how quickly will this increase.
TOKYO, Dec 17. Catherine Plyasunova. The Governor of the Bank of Korea Lee Joo Spruce believes that the decision of the Federal reserve system (FRS) the USA on increasing the basic discount rate will not have a serious negative effect on the Korean economy.
On Wednesday, the open market Committee of the U.S. Federal reserve after the latest meeting for the first time since 29 June 2006 has raised the benchmark interest rate to 0.25-0.5% per annum with a record low of 0-0,25%. Thus, the mean value at the base interest rate is the 0.375% per annum.
“We’ve been expecting a rate hike in the USA. Interest is not something that will increase your bet USA or not, but how quickly will this increase”, — quotes the statement of the head of the regulator, the Agency Renhap.
“The negative effect on the (Korean) market is not particularly worried,” added Lee Joo Spruce.
At the same time, the Governor of the Bank of Korea stressed that the government must be “careful, because in addition to raising the U.S. interest rates there are many other uncertainties, such as the decline in economic indicators in China and a further reduction in oil prices”.