(Seoul = Yonhap Infomax) Reporter Han Jong-hwa = The Bank of Korea said the Federal Open Market Committee (FOMC) was evaluated as dovish in the financial market, but Federal Reserve Chairman Jerome Powell emphasized the need for austerity. .
BOK Vice Governor Lee Seung-heon held a market situation inspection meeting on the 2nd and said, “The 25bp increase in the policy rate at this FOMC meeting was in line with market expectations.” Rates have fallen and stocks have risen as the market has been rated as dovish,” he said.
Vice Governor Lee added, “However, Chairman Powell reiterated the need to maintain austerity for the time being, saying that inflation has slowed somewhat but is still too high.”
The BOK pointed out the fact that Chairman Powell said that ‘the committee discussed that a couple of more additional hikes are needed to reach an appropriately restrictive level’.
Vice-President Lee said, “As the gap in perceptions of inflation and policy paths between the US Fed and the market remains large, we cannot rule out the possibility that volatility in the global financial market will increase in the course of future adjustments in expectations.” “There are also uncertainties related to the development of risk factors, such as changes in expectations for the policy of the ECB and the Bank of Japan, and changes in international raw material prices such as oil prices following the reopening of the Chinese economy,” he stressed.
“As volatility in the domestic financial and foreign exchange markets can also increase according to these changes in external conditions, we will closely monitor market conditions such as exchange rates and capital inflows and outflows, and take preemptive and active market stabilization measures if necessary,” he said.
[email protected]
(End)
This article was serviced at 09:24, 2 hours earlier on the Infomax financial information terminal.
© Yonhap Infomax Unauthorized reproduction and redistribution prohibited