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BOK Chief Vows to Give Attention to Financial Stability

Written: 2016-11-11 14:21:04Updated: 2016-11-11 14:23:51

BOK Chief Vows to Give Attention to Financial Stability

Bank of Korea Governor Lee Ju-yeol has promised to pay particular attention to financial stability amid various uncertainties including those stemming from the U.S. presidential election result.

He said that if uncertainties at home and abroad linger for a long period, this can hinder economic sentiment, increase market volatility and negatively impact economic growth.

Lee made the comments Friday at a news conference after hosting a monthly rate-setting meeting.

The central bank chief expressed concern that if U.S. President-elect Donald Trump's campaign pledges are converted into policies, this may adversely affect global trade as well as South Korean exports. The governor pointed to Trump's pledges such as calling off the Trans-Pacific Partnership(TPP) trade deal, renegotiating free trade agreements and imposing higher tariffs.

He said that changes are expected in U.S. trade policy, the details of which can't be predicted. Lee stressed it's important for Seoul to be fully prepared and keep tabs on policy changes of the incoming U.S. administration.

He added that based on market expectations, the U.S. Fed is likely to raise key rates for December. 

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