'US key rate hike may have limited effect on Korea'
By Yoon Ja-youngVice Minister Joo Hyung-hwanThe U.S. Federal Reserve’s move to raise its key rate in the second half of the year is expected to have limited impact on the Korean economy, the vice finance minister said Thursday.He said the government would closely monitor how U.S. rate decisions affect the Korean economy.“With the U.S. key rate hike imminent and the risks from Greece continuing, conditions can change rapidly anytime in the global financial market,” Vice Strategy and Finance Minister Joo Hyung-hwan said at the macro-economy and finance meeting. The U.S. Federal Open Market Committee (FOMC) froze the key rate at its June meeting, as the market expected.It also lowered the economic growth outlook, but maintained guidance regarding the key rate hike. Hence, the market expects the United States to start raising the key rate in the latter half of the year.Even so, there would not be a huge impact on the Korean economy when considering its external soundness and macroeconomic indices, Joo said, adding that there would be both positive and negative eff
