SEOUL (Reuters) - The head of South Korea’s central bank said on Thursday global economic conditions have changed very drastically since its last meeting in May and that the outcome of the U.S. Federal Reserve’s policy meeting was dovish.
“There have been very drastic changes in external conditions by the time when (I prepared) the speech commemorating the (Bank of Korea’s) founding anniversary,” Bank of Korea Governor Lee Ju-yeol said in response to questions by reporters.
He was referring to his speech last week, in which his remarks calling for an appropriate policy response to changing situations prompted investors to increase their bets on an interest rate cut soon.
The U.S. Federal Reserve on Wednesday said it was ready to battle growing global and domestic economic risks with interest rate cuts beginning as early as next month, as it took stock of rising trade tensions between China and the United States and growing concerns about weak inflation.
Reporting by Joori Roh; Writing by Choonsik Yoo; Editing by Michael Perry