BOK: "Tapering in Line with Market Expectations... Government Bond Purchases if Necessary"

The Bank of Korea Holds 'Situation Review Meeting'... In Line with Market Expectations

[Asia Economy Reporter Jang Sehee] On the 3rd (local time), the U.S. Federal Reserve (Fed) decided at the Federal Open Market Committee (FOMC) meeting to keep the policy interest rate unchanged and to reduce the scale of asset purchases starting in November. The Bank of Korea analyzed that this decision largely aligns with market expectations.

On the 4th, the Bank of Korea held a 'Situation Review Meeting' chaired by Deputy Governor Park Jongseok to examine the international financial market situation following the U.S. FOMC meeting results and the potential impact on domestic financial and foreign exchange markets.

Deputy Governor Park evaluated the FOMC meeting results, stating, "They largely matched market expectations, and the international financial markets showed a stable appearance."

He added, "Given the ongoing high uncertainty related to policy decisions such as the tapering pace and timing of interest rate hikes due to inflation concerns, special attention must be paid to possible changes in policy conditions going forward."

Meanwhile, the Bank of Korea plans to strengthen monitoring of market conditions and, if necessary, implement market stabilization measures such as purchasing government bonds, as volatility in domestic and international financial markets may increase due to changes in major countries' economic and inflation situations and related shifts in policy expectations.