Deputy Prime Minister and Minister of Strategy and Finance, Choo Kyung-ho, diagnosed on the 2nd that uncertainty in the international financial market has eased as the pace of interest rate hikes has been slowed by the US Federal Reserve’s base rate hike of 0.25%p.
Deputy Prime Minister Choo held an emergency macroeconomic and financial meeting at Seoul Bank Hall on the same day and said, “The Fed, which raised interest rates at an unprecedentedly steep pace last year, is evaluated to have adjusted the pace with the range usual. rate increases.” The findings of the Market Committee (FOMC) were mentioned.
“As Fed Chairman Powell said, ‘The process of slowing inflation has already begun while maintaining the current stance that an interest rate rise to a limited level is appropriate,’ it is interpreted that uncertainty in the market has been somewhat resolved, and the international situation. financial market early this morning It seemed stable.”
Regarding the domestic financial market, Deputy Prime Minister Choo added, “This year, the government’s efforts to stabilize the market and expectations for adjusting the pace of financial tightening in major countries seem to be easing volatility.”
However, it was found that tensions cannot be eased even for a moment as uncertainty remains high, as inflation is expected to remain high for the time being amid growing difficulties in the real sector, such as the recent fall in exports.
In particular, Deputy Prime Minister Choo noted, “If the gap in perception between the Fed and the market continues for now on the future interest rate path, such as the possibility of a rate cut within the year, it could act as a factor that will increase instability in the international financial market in the future.”
“We will strengthen market monitoring and respond in a timely manner in accordance with the contingency plan for each sector, while seeking the best possible policy combination in more detail,” he said.
Enquiries: Fund Market Division, Office of Economic Policy, Ministry of Strategy and Finance (044-215-2750)
