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PM says Fed's rate hike will impact S. Korean economy, people's lives

All News 14:02 July 28, 2022

SEOUL, July 28 (Yonhap) -- Prime Minister Han Duck-soo said Thursday the U.S. Federal Reserve's latest rate hike is expected to have a considerable effect on the South Korean economy and people's lives.

Han made the remark at a policy coordination meeting held just hours after the Fed hiked the federal funds rate by 75 basis points for the second straight month to curb high inflation.

The move raised its key rate to a target range of 2.25-2.5 percent, pushing the U.S. interest rates above South Korea's benchmark interest rates for the first time since February 2020. South Korea's base rate stands at 2.25 percent.

"High inflation felt by the people could continue for some time ... and the trade balance will also be in a difficult situation due to soaring oil prices and other factors," Han said.

The prime minister said it is a good sign the country's gross domestic product, the broadest measure of economic performance, grew 0.7 percent on-quarter in the April-June period, and vowed to closely inspect the domestic and external situation.

Prime Minister Han Duck-soo speaks at a policy coordination meeting held at the government complex in Seoul on July 28, 2022. (Yonhap)


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