By Kang Yoon-seung
SEOUL, Sept. 21 (Yonhap) — Finance Minister Choo Kyung-ho said Thursday that the South Korean government will be closely monitoring the increasing global economic instability, following the U.S. Federal Reserve’s decision to hold its key rates steady.
At the Federal Open Market Committee (FOMC) meeting on Wednesday, the central bank chose to keep the rate between 5.25 percent and 5.50 percent, which was raised by a quarter percentage point in July.
“The possibility of persistent high interest rates has been raised again, likely leading to greater volatility in the global financial market,” Choo said during the early morning session.
Finance Minister Choo Kyung-ho speaks (2nd from R) speaks during a meeting held in Seoul on Sept. 21, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)
“The government and the Bank of Korea will be on high alert and actively manage the situation in a unified manner,” he added.
The gap between the two countries’ key rates remains at an all-time high of 1.75-2.0 percentage points.
Choo, however, said that the South Korean financial market, including the securities and foreign exchange markets, are still stable despite the economic unrest.
“As the global economic uncertainties escalate due to prolonged monetary tightening and higher oil prices, the government and the Bank of Korea will remain vigilant and closely monitor the market. If necessary, we will take action in a timely manner,” he said.
colin@yna.co.kr
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