Bank of Korea Holds Situation Review Meeting... "FOMC Outcome as Expected, Strengthening Market Monitoring"

Situation Review Meeting Chaired by Vice President Lee Seungheon on the 18th

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] On the 18th, the Bank of Korea held a 'Situation Review Meeting' chaired by Deputy Governor Seunghun Lee at 8 a.m. to discuss the trends in the U.S. financial market following the Federal Open Market Committee (FOMC) meeting results, the potential impact on the domestic financial market, and response measures.

The Bank of Korea stated that although the FOMC meeting results did not significantly differ from market expectations, it cannot rule out the possibility of increased volatility in domestic and international financial markets going forward.

It added, "We plan to strengthen monitoring of market conditions and swiftly implement stabilization measures for the domestic financial and foreign exchange markets if necessary."

The FOMC unanimously decided on the 17th (local time), after a two-day meeting, to keep the benchmark interest rate at the zero level (0.00?0.25% per annum). The bond purchase program, amounting to $120 billion per month, will also be maintained. Despite concerns about inflation in the financial market, the FOMC projected that the zero interest rate level would be maintained through 2023.

On the same day, the U.S. Fed forecasted this year's economic growth rate at 6.5%, exceeding the December estimate of 4.2%. The growth forecast for next year was also slightly raised from 3.2% to 3.3%.

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