Pace of Fed rate hike more important than timing: BOK chief

Bank of Korea Gov. Lee Ju-yeol on Friday said the pace of the U.S. Federal Reserve's rate hike would be of bigger interest than its timing as the move is unlikely to be a one-off.
  

"While the timing of the rate hike is important, there is much more attention on the pace of the rate hike since it will not be a one-off move," the top central banker told reporters ahead of a meeting with local bank presidents.
  

Lee projected the U.S. rate hike to be "gradual," which would help ease market shock.
  

The BOK governor's remarks come after the Fed removed the key word "patient" from its latest statement, moving a step closer to increasing interest rates for the first time in nine years.
  

Earlier this month, the central bank unexpectedly slashed the policy rate by a quarter percentage point to a record low of 1.75 percent, joining in a global wave of easing aimed at bolstering growth.
  

In a press conference following the decision, Lee said while the BOK is preparing measures in line with the Fed's rate hike scenario, it does not necessarily mean that other countries have to immediately follow the U.S. rate hike move.
  

Participants at the meeting, meanwhile, said they have stepped up management of foreign exchange liquidity to brace against increased volatility in the global financial market as uncertainties over the Fed's rate hike linger.
  

They also stressed the need to diversify profit sources as the latest rate cut by the BOK is feared to hurt their interest margin, according to a BOK press release distributed after the meeting.
  

Eleven bank presidents, including Industrial Bank of Korea President Kwon Seon-joo and Standard Chartered Korea President Park Jong-bok, attended the meeting. (Yonhap)