The Bank of Korea's governor says... the U.S. Federal Reserve's rate hike will likely have a limited impact on Korea's capital markets.
BOK Governor Lee Ju-yeol told reporters Thursday morning that the *pace of rate hikes in the U.S. is in line with expectations and that a rate gap of 50 to 75 basis points is unlikely to trigger capital flight.
On the BOK's rate decision for October, Governor Lee said,.... the bank will take into consideration domestic macroeconomic conditions, capital market stability and the impact of the U.S.-China trade war.
His remarks were echoed by finance minister Kim Dong-yeon, who also said the U.S. rate hike will have a limited impact on Korea's markets, citing the country's strong fundamentals,... but he added that the government will continue monitoring the economic environment.