Bank of Korea(BOK) Governor Lee Ju-yeol has called for thorough readiness to deal with possible repercussions as the U.S. and other advanced countries are moving to reduce liquidity.
 
Lee, who attended meetings of the Bank for International Settlements(BIS) in Switzerland and the European Central Bank(ECB) forum in Portugal last week, said during a meeting on Tuesday that central bank governors agreed that the global economy is showing clear signs of recovery.
 
The BOK chief then noted that head of the ECB Mario Draghi recently hinted at the possibility of reducing quantitative easing in the wake of rate hikes by the U.S. Federal Reserve, saying that advanced countries’ monetary policies are about to change after ten years of ultra-low interest rates and massive quantitative easing.
 
He said that the expected reduction in global liquidity might cause unexpected side effects on emerging economies, adding the central bank will closely monitor major countries’ monetary policies and international capital flows.