Bank of Korea governor says US trade deal takes huge burden off policymakers
"I thought we would be in a difficult situation if things went wrong with tariffs before the policy meeting, and while there might be different opinions, I think you did a difficult job at a difficult time," Bank of Korea Governor Rhee Chang-yong said at the meeting with Finance Minister Koo Yun-cheol, according to a media pool report of his opening remarks.
Koo visited the U.S. last week, just a week after he took office, to lead South Korea's negotiation team and clinched a trade deal with U.S. President Donald Trump that reduced tariffs on South Korean goods to 15% from a threatened 25%.
At the meeting at the Bank of Korea, Rhee and Koo agreed to communicate closely with each other for policy coordination as well as to cooperate on long-term structural reforms, Koo's ministry said in a statement.
The Bank of Korea kept its benchmark interest rate unchanged at 2.50% last month, but a majority of board members signalled another rate cut in the next three months and warned of "significant" economic uncertainty from the U.S. tariffs.
The central bank next meets on August 28.
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