BOK's Lee: yield differential with US not cause of financial stability

Omkar Godbole FXStreet Contributor

Bank of Korea's decision to keep interest rates unchanged at 1.5 percent in October was not unanimous, Governor Lee Ju-yeol told a news conference after the meeting on Thursday and added further that the widening yield differential with the US is not the cause of financial instability.

Key points (Source: Reuters)

Sees 2018 growth at 2.7 pct vs 2.9 pct seen previously.
Sees 2019 growth at 2.7 pct vs 2.8 pct seen previously.
Sees 2018 inflation at 1.6 pct vs 1.6 pct seen previously.
Thursday's interest rate decision was not unanimous.
Board member lee IL-houng was dissenter to Thursday's rate decision.
Board member Koh Seung-beam was dissenter to Thursday's rate decision.
Yield differential with US not cause of financial instability.
Financial imbalances cannot be resolved by monetary policies alone.
Major outflow from local bond market unlikely.
New growth outlook of 2.7 pct for this yr factored in Q2 growth.
Household debt growth should be lowered.
It's time to pay more attention to financial stability.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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