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Fed likely to cut bond-buying stimulus as market expected: BOK head

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(Globalpost/GlobalPost)

SEOUL, Sept. 4 (Yonhap) -- South Korea's top central banker said Wednesday that the U.S. Federal Reserve is expected to start tapering its bond-buying program amid growing market expectations that the bank would take such action this month.

Bank of Korea (BOK) Gov. Kim Choong-soo said that talk of a bond-buying stimulus program cut has shifted from whether the Fed would begin tapering to when, with only unforeseen circumstances standing in the way of its implementation.

He made the remarks before holding a quarterly meeting with heads of smaller firms.

Market players are betting on the view that the Fed will decide to begin tapering the US$85 billion monthly bond purchases at its September policy meeting. The rate-setting meeting is slated for Sept. 17-18.

Global financial markets have been on edge since Fed Chairman Ben Bernanke said in June that the U.S. central bank would start to reduce quantitative easing steps later this year if its economy recovers as expected.

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