SEOUL (Reuters) - South Korea’s central bank chief said on Friday the bank must take a cautious approach to any further rate cuts, as economic indicators need to be assessed carefully to gauge the impact of China’s coronavirus outbreak on the economy.
“(The bank) is aware of market expectations of policy interest rate easing but since it is difficult to determine the extent of the virus impact on the economy and how long the virus spread will last, it is necessary to check the impact of the virus through economic indicators”, the Bank of Korea Governor Lee Ju-yeol told reporters after a meeting with the finance minister and other top economic policy officials.
When asked whether a rate cut was discussed at Friday’s meeting as part of possible fresh measures, Lee said there was no discussion on the matter with the finance minister.
Lee’s remarks pulled down the country’s three-year treasury bond futures KTBc1.
Reporting by Joori Roh; Editing by Shri Navaratnam