Central banks rush to cut key rates
By Lee Kyung-min Many central banks have joined a global wave of key rate cuts as the world economy is losing growth momentum amid the escalating U.S.-China trade dispute.These moves are putting the Bank of Korea (BOK) in a tight spot over whether it should follow suit in its next rate-setting meeting in July. BOK Governor Lee Ju-yeol Wednesday hinted at a possible rate reduction.The BOK's shift to a dovish stance came after Federal Reserve Chairman Jerome Powell hinted at a rate cut on June 4, saying the U.S. central bank was “prepared to act” to help the country's 10-year economic expansion if the ongoing trade war continues with China, Mexico and other nations. "We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective,” Powell said.On June 3, the Reserve Bank of Australia (RBA) cut the key interest rate to a new record low
