Government to Expand Treasury Bond Buyback Scale on 15th... "Skeptical of Inflation Peak Theory"

Bang Gi-seon, Vice Minister of Economy and Finance, Holds Emergency Macroeconomic and Financial Review Meeting

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government will expand the scale of the national treasury bond buyback scheduled for the 15th and add target items.

Bang Giseon, the 1st Vice Minister of the Ministry of Economy and Finance, held an emergency macroeconomic and financial inspection meeting on the afternoon of the 13th, involving departments related to macroeconomics and finance within the Ministry of Economy and Finance, and stated, "Skeptical views on the peak-out of global inflation are expanding, increasing uncertainty about the magnitude and speed of interest rate hikes in major countries."

He added, "We must pay close attention to global inflation and the normalization schedule of monetary policy, maintain heightened vigilance, and closely monitor the financial and foreign exchange market situation," urging, "Please thoroughly review all available countermeasures to stabilize the market."

At the meeting, discussions were held on the trends and response directions of domestic and international financial markets, which have increased volatility following the announcement of the U.S. May consumer price inflation rate (8.6%). The European Central Bank's first interest rate hike in 11 years, the prolonged Ukraine crisis, and concerns about a global economic slowdown are also market burden factors. Accordingly, the current KOSPI is renewing its yearly low, government bond yields have increased by 24.7 basis points compared to the previous day for the 3-year maturity, and uncertainty is expanding. The won-dollar exchange rate rose to the high 1280 won range during the session.

Vice Minister Bang said, "In line with the results of the U.S. Federal Open Market Committee (FOMC) meeting to be announced on June 16, we will hold a macroeconomic and financial meeting with the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, and others, and if necessary, immediately activate market stabilization measures under cooperation with related agencies." He added, "Regarding the government bond market, we will strengthen policy coordination with the Bank of Korea and plan to expand the buyback scale scheduled for the 15th and add target items."

He continued, "Together with the Bank of Korea, we must monitor the excessive volatility of the won recently seen in the domestic foreign exchange market with special vigilance," urging, "Please make efforts to prevent the intensification of herd behavior caused by psychological overreactions within the market."

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