Korea May Be Forced to Use Unconventional Stimulus For Economy Hit by Trade War

With its interest rates back at an all-time low, speculation is mounting that the Bank of Korea may be forced to join other central banks in using unconventional tools to stimulate one of the hardest-hit economies in the trade war, Bloomberg News reported. While Governor Lee Ju-yeol said last week it was too early to consider unconventional steps, he also acknowledged that the BOK was constantly reviewing and updating its “contingency plans” and studying actions previously taken by other nations should it run out of room to lower interest rates. “When the down cycle comes and monetary stimulus comes to the rescue, Korea is no exception,” said Tao Dong, managing director of Credit Suisse Private Banking Asia-Pacific. Read more