Synopsis
Acting President Choi Sang-mok of South Korea calls for heightened vigilance and enhanced monitoring of markets due to uncertainties from U.S. economic policies under the Trump administration. The need for proactive measures to maintain economic stability and credit ratings was emphasized during a recent macroeconomic meeting.Key Takeaways
- Acting President Choi Sang-mok urges vigilance amid U.S. policy uncertainties.
- Enhanced market monitoring systems are necessary.
- Investor relations session planned for next month.
- Need to maintain stable sovereign credit ratings emphasized.
- Importance of close observation of market dynamics acknowledged.
Seoul, Jan 30 (NationPress) Acting President Choi Sang-mok emphasized the necessity of remaining alert and enhancing market oversight on Thursday amidst escalating uncertainties linked to monetary and external economic strategies from the Donald Trump administration.
Choi articulated these points during a macroeconomic conference aimed at evaluating new policies from the US government and the Federal Reserve’s recent rate-setting meeting on Wednesday (local time), where it opted to keep the benchmark interest rate steady after three successive reductions, as reported by Yonhap news agency.
“External uncertainties continue to be pronounced regarding the new U.S. government's policies and external measures. Each agency must remain alert and uphold a collaborative, continuous monitoring system for the financial and foreign exchange markets,” Choi remarked.
“Next month, we will conduct an investor relations session to proactively communicate our robust economic fundamentals and engage with global credit rating agencies to maintain a stable sovereign credit rating,” he added.
Bank of Korea Governor Rhee Chang-yong along with the heads of the Financial Services Commission and the Financial Supervisory Service participated in the meeting, recognizing the importance of closely observing the market considering recent fluctuations in the U.S. and other major economies.
The stock and foreign exchange markets were closed on the last day of the extended six-day Lunar New Year holiday on Thursday.
Despite Trump's appeal for lower policy rates, Fed Chair Jerome Powell stated to reporters after the latest decision that there is no need to rush to modify the policy stance, highlighting the resilience of the economy.
The Fed’s recent rate decision has widened the gap between the key rates of South Korea and the United States to as much as 1.5 percentage points.
Earlier this month, the Bank of Korea (BOK) decided to maintain its benchmark interest rate, following consecutive rate cuts, due to the weakening local currency amid political turmoil and uncertainties arising from the new Trump administration.
All six board members expressed a necessity to keep the option for further rate cuts open in the upcoming three months to support the economy.
