Urgent macroeconomic and financial meeting held within 18 days
“No need to be overly concerned”
Choo Kyung-ho, Deputy Prime Minister and Minister of Strategy and Finance, said, “We will do our best to stabilize the market,” adding, “High uncertainty in the currency and foreign exchange markets will continue for a considerable period of time. with intense monetary austerity policies in the US and Europe.”
“The austerity path of the US central bank (Fed) has exceeded market expectations, and the growth outlook has been significantly downgraded,” Deputy Prime Minister Choo said at a meeting of emergency macroeconomic finance (hereinafter referred to as “emergency funds”) held at the Bank Hall in Seoul on the same day.
He emphasized that “the volatility of the international financial market has increased slightly,” but “compared to past financial crises, domestic and foreign soundness indicators are in good condition, so there is no need to be overly concerned.”
“The government, the central bank, and the Financial Supervisory Service will do their best to stabilize the market without letting go of tension for a moment in the spirit of ‘one team’.”
The Fed raised interest rates by 0.75 percentage points for the third time in a row, following June and July. As a result, the base rate reversed the domestic base rate (2.5%) and the United States (3.00-3.25%) again. Fed Chairman Jerome Powell said he would not consider a rate cut until he was “very confident” that inflation was heading towards the 2% target.
Meanwhile, the emergency fund meeting was held again in 18 days after being held on the 5th. In addition to Deputy Prime Minister Chu, Bank of Korea Governor Chang-yong Lee, Financial Services Commission Chairman Kim Joo-hyun, Financial Supervisory Service Chairman Lee Bok-hyun, and President Choi Sang-mok Senior Economic Officer attended the meeting.
Reporter Chae Seon-hee, Hankyung.com firstname.lastname@example.org