Bank of Korea holds interest rates steady, as expected
The Bank of Korea's seven-member monetary policy board voted to keep its benchmark interest rate (KROCRT=ECI), opens new tab unchanged at 2.50%, an outcome expected by all 33 economists in a Reuters poll.
Governor Rhee Chang-yong will hold a press conference at 0210 GMT, which will be livestreamed via YouTube.
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Reuters
an hour ago
- Reuters
Fed's Hammack sees no urgent reason to lower rates
July 14 (Reuters) - Federal Reserve Bank of Cleveland President Beth Hammack said on Monday she sees no imminent need to lower interest rates right now given that inflation is still too high, amid ongoing uncertainty about how trade tariffs will affect price pressures. 'We're pretty close to where the neutral rate is and so I see an economy that's resilient, I see one that's working really well, and I don't see a need to really reduce (interest rates) unless we see material weakening on the labor side,' Hammack said in an interview on Fox Business. For Hammack, inflation levels that stand above the 2% target remain the main obstacle to cutting the cost of short-term credit. When it comes to the Federal Open Market Committee meeting scheduled for July 29-30, Hammack told the television channel that "I walk into every meeting with an open mind, waiting to see where the data is going to take us, where the conversation takes us." "But from where I sit and what I see, what I see is that we're hitting on our employment side of the mandate, we're not there yet on the inflation side of the mandate," Hammack said. With inflation still too high, "I think it's important for us to maintain a restrictive posture of monetary policy to make sure that we're getting inflation down to our target of 2%" for inflation. Most Fed officials who have spoken over recent weeks appear on board with the notion that the current federal funds target rate range, now between 4.25% and 4.5%, will remain in place at the end of the month. At the Fed's June meeting officials penciled in two cuts later this year and investors generally expect that easing to start at the September meeting. There is however a minority of Fed officials who are open to cutting rates in June, on the basis of the idea that the Trump administration's aggressive and ever-shifting import tax hikes will have a one-time impact on inflation and can be ignored as part of setting monetary policy. Speaking last week, Fed governor Christopher Waller said "we're just too tight and we could consider cutting the policy rate in July." Waller added his take on rates is "not political." The Fed has been facing substantial pressure from President Donald Trump to cut interest rates but officials have so far resisted this pressure and focused on the economic data. In her interview, Hammack cautioned that it remains unclear how the tariffs will play out. Given the still unfolding influence of the tariffs, "I think wait and see is the best place for us to be, because I think we don't know exactly what those impacts are going to be."
The Guardian
an hour ago
- The Guardian
Indian regulator orders airlines to check Boeing fuel switches after plane crash report
India's aviation regulator has ordered the country's airlines to examine fuel switches on Boeing aircraft, after a preliminary report on the Air India flight 171 crash in June showed the fuel supply had been cut seconds after takeoff. The Directorate General of Civil Aviation said it had issued the order after several domestic and international airlines began making their own inspections of the locking mechanisms attached to the switches. South Korea was also preparing to order all airlines in the country that operate Boeing jets to examine the switches. A preliminary report, released on Saturday, found both engines of the Boeing 787 Dreamliner, which crashed, killing 260 people, had been starved of fuel, leading investigators to focus on the fuel switches in the cockpit. There has been online speculation about two competing theories – one of pilot error or sabotage, and one of faulty fuel switch locks – although Air India has cautioned that the investigation is in its early stages and there have been no recommended actions against Boeing. Air India's CEO, Campbell Wilson, said in a memo to staff on Monday that the report had 'triggered a new round of speculation in the media' after providing 'both greater clarity and opened additional questions'. Wilson added: 'The preliminary report identified no cause nor made any recommendations, so I urge everyone to avoid drawing premature conclusions as the investigation is far from over.' The report, by India's Aircraft Accident Investigation Bureau (AAIB), had cited a voice recording from the flight deck in which it said one of the pilots was heard asking the other 'why did he cutoff?' The other pilot responded that he 'did not do so', according to the report. Both switches were moved back to allow fuel to flow, but the plane was too low and slow to recover. While the report is not intended to provide definitive answers but only lay out basic facts, it has led to theories suggesting one of the pilots had either turned off the fuel to both engines, either by mistake or to deliberately bring down the plane. The Indian Commercial Pilots' Association (ICPA) said it was 'deeply disturbed by speculative narratives … particularly the reckless and unfounded insinuation of pilot suicide'. 'There is absolutely no basis for such a claim at this stage,' it said in a statement on Sunday, adding, 'it is deeply insensitive to the individuals and families involved'. A separate theory is that the fuel switches, which are located just below the thrust levers, might have switched off by themselves. This is usually not possible as they operate independently and need to be lifted up to disengage a lock. Adding to concern around fuel switches, the preliminary accident report had cited a bulletin issued by the US Federal Aviation Administration (FAA) in 2018 that had recommended the locking mechanisms be checked on multiple variants of Boeing aircraft, including the 787, after the company had received reports that some 737 models had 'fuel control switches were installed with the locking feature disengaged'. However, the advisory only made recommendations and did not consider it to be 'an unsafe condition' that needed a mandated inspection. It was also issued in 2018 and related to so many different types of Boeing jets that it would probably have already been flagged if the locks were not working on operating fleets. Steve Giordano, a former airline captain who flies several Boeing planes including the 787, said he did not believe the issues were 'mechanical' or 'airplane related'. 'I'm not convinced it was suicide or intentional,' he wrote on X. 'I'm just convinced that the switches were moved by a human hand.'
Reuters
2 hours ago
- Reuters
India orders its airlines to check fuel switches on Boeing jets
NEW DELHI, July 14 (Reuters) - India on Monday ordered its airlines to examine fuel switches on several Boeing models, while South Korea said it would order a similar measure, as scrutiny intensified of fuel switch locks at the centre of an investigation into a deadly Air India crash. The moves by India and South Korea came despite the planemaker and the U.S. Federal Aviation Administration telling airlines and regulators in recent days that the fuel switch locks on Boeing jets are safe. The locks have come under scrutiny following last month's crash of an Air India jet, which killed 260 people. A preliminary report found that the switches had almost simultaneously flipped from run position to cutoff shortly after takeoff. The report noted a 2018 advisory from the U.S. Federal Aviation Administration (FAA), which recommended, but did not mandate, operators of several Boeing models including the 787 to inspect the locking feature of fuel cutoff switches to ensure they could not be moved accidentally. India's Directorate General of Civil Aviation said it had issued an order to investigate locks on several Boeing models including 787s and 737s, after several Indian and international airlines began making their own inspections of fuel switches. The regulator oversees the world's third-largest and fastest-growing aviation market and its move raises the stakes for Boeing, whose aircraft are used by three of the country's four largest airlines. A spokesperson for the South Korean transport ministry said checks there were in line with the 2018 advisory from the FAA, but did not give a timeline for them. Boeing referred Reuters' questions to the FAA, which was not immediately available to comment outside regular hours. The company's shares were up 1.4% in U.S. premarket trading. Some other global airlines were weighing their own inspections or had begun their own checks. In a statement, Japan's JAL said safety was its top priority, adding, "We are closely monitoring the investigation into the incident and will implement any necessary inspections based on its findings." Over the weekend, Air India Group started checking the locking mechanism on the fuel switches of its Boeing 787 and 737 fleets and has discovered no problems yet, a source familiar with the matter told Reuters. About half the group's 787s have been inspected and nearly all its 737s, the source added, speaking on condition of anonymity. Inspections were set to be completed in the next day or two. On Sunday, citing a document and sources, Reuters reported that the planemaker and the FAA had privately issued notifications to airlines and regulators that the fuel switch locks on Boeing planes were safe and checks were not required. The Air India crash preliminary report said the airline had not carried out the FAA's suggested inspections as the FAA's 2018 advisory was not a mandate. It also said maintenance records showed that the throttle control module, which includes the fuel switches, was replaced in 2019 and 2023 on the plane involved in the crash. In an internal memo on Monday, Air India CEO Campbell Wilson said the investigation into the crash was far from over and it was unwise to jump to premature conclusions, following the release of the preliminary report.
