The Bank of Korea "Extends Unlimited RP Purchases by 1 Month... Additional Supply if Financial Market Instability Occurs"

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea has decided to extend the measure of 'full allotment repurchase agreement (RP) purchases,' which provides unlimited liquidity to financial institutions, for one more month.

A Bank of Korea official stated on the 25th, "The full allotment RP purchase measure (91-day maturity), which is set to expire on the 30th, will be extended for one month and operated in July as well."

The purchases are conducted through a fixed-rate full allotment method without limit constraints, and the bid rate is announced for each auction by adding a certain premium to the base rate (base rate + α). Auctions are held every Tuesday, with a total of four rounds scheduled in July.

A Bank of Korea official added, "If financial companies' funding conditions worsen or interest rate volatility increases, causing financial market instability, we will actively supply liquidity through non-regular RP purchases and other measures."

This content was produced with the assistance of AI translation services.