Vice Minister Lee Hyeong-il of the Ministry of Economy and Finance said on the 11th that the government will continue a 24-hour joint monitoring system for the financial and foreign exchange markets.
The Vice Minister said this to related agencies, including the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service, at the "Macroeconomy and Finance Meeting" that day. The meeting participants reviewed the impact on domestic and overseas financial and foreign exchange markets from the U.S. Federal Open Market Committee (FOMC)'s decision early that morning Korea time to cut interest rates.
That day, the U.S. Federal Reserve, at the FOMC, cut the benchmark interest rate by 0.25 percentage point (p). As a result, the U.S. policy rate is 3.50% to 3.75%. The Fed lowered its outlook for inflation and raised its outlook for growth. It also maintained its earlier projection that it will cut the policy rate one more time next year.
Regarding this, participants in the Macroeconomy and Finance Meeting shared the view that major countries' monetary policies are diverging and market uncertainty is high. The United States is continuing an interest rate cut stance, while Japan is expected to raise its policy rate soon. Because of this, they assessed that global capital flows and market volatility at home and abroad could increase.