SEOUL, Oct. 10 (Xinhua) -- Bank of Korea (BOK) Governor Kim Choong-soo said Thursday that the tapering of U.S. bond purchases would not be influenced by the nomination of Federal Reserve Vice Chair Janet Yellen as the next Fed chief.
"Policy coherence will be maintained as Yellen, the incumbent Vice Chair, becomes the next Fed chief," Governor Kim told reporters at a press conference.
Kim said that consistent policy does not mean "no change" in the Fed's monetary policy, noting that the Fed has repeatedly stressed over the reduction of massive asset purchases being "( economic) data-dependent."
Expectations spread that the Fed would keep its current massive monetary stimulus as Yellen, widely considered as a policy "dove," was named at the next Fed chief who will succeed incumbent Fed Chairman Ben Bernanke.
Fiscal impasse in Washington has lasted since Oct. 1, with little signs of progress on negotiations over the budget plan and debt ceiling. Concerns over the prolonged U.S. fiscal crisis lowered possibilities for the Fed to begin the tapering of its monthly bond purchases this month.
"If the length of government shutdown exceeds market expectations, the probability of QE being tapered at the October FOMC meeting will decline," said Peter Park, a fixed-income analyst at the Woori Investment & Securities.