BOK Deputy Governor: "Uncertainty in US Monetary Policy Still at High Level"

Bank of Korea Holds 'Market Situation Review Meeting' on June 2 Regarding US FOMC Meeting

The Bank of Korea assessed that uncertainty regarding U.S. monetary policy remains high. It stated that if volatility in the foreign exchange and financial markets expands excessively in the future, it will implement market stabilization measures.

On the 2nd, the Bank of Korea held a market situation review meeting chaired by Deputy Governor Yu Sang-dae to examine the impact of the U.S. Federal Open Market Committee (FOMC) meeting results on international financial markets and domestic financial and foreign exchange markets.

Earlier, the U.S. Federal Reserve (Fed) kept the policy interest rate unchanged at 5.25?5.5% on the 1st (local time).

At the meeting, Deputy Governor Yu said, "At this FOMC, Chairman Powell indicated that the possibility of further rate hikes is low, but maintained a cautious stance that it will take longer to be confident about disinflation and rate cuts," adding, "Uncertainty related to the Fed's future monetary policy still appears to be high."

He continued, "Given the considerable uncertainty in the monetary policies of major countries including the U.S., and the presence of various external uncertainty factors such as geopolitical risks in the Middle East, we will continue to monitor the foreign exchange and financial market situation with special vigilance."

The Bank of Korea plans to respond with market stabilization measures if volatility in the foreign exchange and financial markets is expected to expand excessively following the release of major countries' economic indicators.