美연준, 코로나 확산에 긴급 금리인하…한은도 내리나 To try and protect the world's largest economy from the impact of the outbreak,... the Federal Reserve has cut interest rates by half a percentage point.
That's twice the size of the Fed's typical rate moves, prompting speculation that the Bank of Korea might follow suit.
Kim Dami reports.
In the first emergency rate cut since 2008, the U.S. Federal Reserve slashed its interest rates by half a percentage point on Tuesday amid increasing concerns over the COVID-19 outbreak.
"Earlier today, the Federal Open Market Committee announced a one-and-a-half percentage point reduction in the target range for the federal funds rate, bringing that range to 1 to 1-and-a-quarter percent. My colleagues and I took this action to help the U.S. economy keep strong in the face of new risks to the economic outlook. The fundamentals of the U.S. economy remain strong."
The Fed's decision to cut interest rates before its next scheduled policy meeting in mid-March reflects the urgency it is facing to prevent a global recession.
"The virus and the measures that are being taken to contain it will surely weigh on economic activity both here and abroad for some time. We are beginning to see the effects on the tourism and travel industries. And we are hearing concerns from industries that rely on global supply chains."
Following the Federal Reserve's sudden decision, experts say the Bank of Korea may also lower its interest rate.
The Bank of Korea last week kept its benchmark rate at one-point-25 percent for February.
The rate is currently at an all-time low.
"Assuming that they don't do anything between now and the 9th of April, and also if the coronavirus spread is not contained, then they should have much more data on the real side and the real side data will get worse than what they have right now. It will increase the likely of a cut in April meeting."
Recognizing Fed's monetary policy change, the Bank of Korea held an emergency meeting on Wendesday.
BOK chief Lee Ju-yeol said the central bank would closely monitor market trends and actively pour efforts into stabilizing local markets,... as monetary policy has limitations in its ability to reduce the impact of the COVID-19 crisis.
Kim Dami, Arirang News.
#COVID19 #coronavirus #economy
Arirang News Facebook:
0 Comments