South Korea's top economic policymakers said Thursday the latest interest rate cut by the US Federal Reserve is expected to have a limited impact on the domestic economy.
The remarks were made during a macroeconomic policy meeting chaired by Finance Minister Koo Yun-cheol and attended by Bank of Korea Gov. Rhee Chang-yong, as well as the heads of the Financial Services Commission and the Financial Supervisory Service, according to the Ministry of Economy and Finance. Rhee, who is currently in Washington, joined the meeting virtually.
On Wednesday, the US Federal Reserve lowered its benchmark interest rate by 25 basis points, the first rate cut since December and also the first under President Donald Trump's administration.
The Fed also signaled the possibility of two additional rate reductions within the year amid growing political and economic pressure to support growth.
The participants assessed that the domestic impact will likely remain limited as the US appears to be maintaining a dovish stance on monetary policy, the ministry said in a press release.
Koo described the domestic financial markets as showing a "stable trend," but cautioned that global uncertainties persist, such as US tariff policy measures and other economic indicators.
They pledged to continue working closely together to ensure stable macroeconomic and financial market management, the ministry added.
The officials also agreed to enhance interagency communication and cooperation to closely monitor key risk factors, including developments in ongoing tariff negotiations with Washington. (Yonhap)
