Finance Minister Choi Sang-mok (L) speaks during an emergency macroeconomic meeting held via teleconferencing on May 2, 2024, in this photo provided by his office. (Image courtesy of Yonhap)
SEOUL, May 2 (Korea Bizwire) — Finance Minister Choi Sang-mok vowed Thursday to stay vigilant on uncertainties regarding interest rate decisions by major economies and the Middle East crisis and to take bold market stabilization steps when necessary.
Choi made the remarks during an emergency macroeconomic meeting meant to assess the Federal Reserve’s rate-setting meeting Wednesday (U.S. time), where it kept the benchmark interest rate at between 5.25-5.5 percent for a sixth consecutive time.
Fed Chair Jerome Powell said interest rate cuts could be delayed given still-high inflation, though he made it clear that it is “unlikely the next policy move will be a hike.”
“Uncertainties remain high on when and how much major countries would cut interest rates, and the possibility of greater market volatility due to the Middle East situation cannot be ruled out,” Choi said.
The South Korean economic fundamentals remain strong, just as shown in rising exports and a rebound in private consumption, and the government will implement “bold market stabilization measures against excessive volatility.” he added.
The latest Fed rate freeze put the gap between the key rates of South Korea and the United States at up to 2 percentage points.
(Yonhap)
