SEOUL, Sept. 19 (Xinhua) -- South Korea's top central banker said Thursday that the U.S. interest rate cut was in line with market expectations.
Bank of Korea (BOK) Governor Lee Ju-yeol told reporters that the U.S. stocks and bonds showed no great volatility overnight as the U.S. policy rate cut was in line with market consensus.
Lee said it was true the U.S. rate cut reduced burden for other central banks, including the BOK, in the management of monetary policy, noting that the U.S. Federal Reserve did not close a room for further rate cut.
The Fed lowered its benchmark interest rate by 25 basis points to a range of 1.75-2.00 percent, the second rate cut this year.
The BOK slashed its policy rate by a quarter percentage point to 1.50 percent in July. Expectations ran high for the BOK to lower the rate further to an all-time low of 1.25 percent by the end of this year.
Lee said the BOK would run its monetary policy considering growth, inflation and financial stability, adding that the external risks, including the global trade dispute, will be the biggest factor to consider in the future policy decision.
