Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, noted on the 19th regarding the U.S. interest rate cut decision, "As major global currencies are showing significant weakness against the dollar, it seems our financial and foreign exchange markets will also experience increased volatility in the short term."
Deputy Prime Minister Choi said this during a macroeconomic finance meeting held at the Korea Federation of Banks in Jung-gu, Seoul, emphasizing that "it is a time when calm responses from market participants are needed."
At the meeting, Deputy Prime Minister Choi, along with Bank of Korea Governor Lee Chang-yong, Financial Services Commission Chairman Kim Byung-hwan, and Financial Supervisory Service Governor Lee Bok-hyun, reviewed the impact of the U.S. Federal Open Market Committee (FOMC) interest rate cut decision on major global currencies, global financial market trends, and domestic effects, and discussed response measures. The U.S. Federal Reserve (Fed) lowered the key interest rate by 0.25 percentage points to 4.25-4.5% early that morning, marking the third consecutive cut.
Deputy Prime Minister Choi said, "Excessive bias in one direction can lead to a significant reaction in the opposite direction in the future," and reiterated, "it is a time when calm responses from market participants are needed."
Furthermore, he stated, "The government and the Bank of Korea will maintain a high level of vigilance and continue a 24-hour financial and foreign exchange market monitoring system, while implementing additional market stabilization measures promptly and boldly in case of excessive volatility."
Deputy Prime Minister Choi also announced plans to include measures for foreign exchange market stabilization and securing foreign currency liquidity, such as improving foreign exchange supply and demand, revitalizing foreign exchange transactions during extended hours, and enhancing transaction infrastructure related to the World Government Bond Index (WGBI) in the 'economic policy direction for next year.'"
Deputy Prime Minister Choi said, "In addition, we will make every effort to stabilize the financial market and support vulnerable groups by devising measures to strengthen the financial capacity of financial companies, alleviate financial burdens on small business owners, and support inclusive finance."