S. Korea to closely monitor economic uncertainties, including US rates

Finance Minister Choo Kyung-ho said Thursday the government will closely monitor rising global economic uncertainties, after the US central bank decided to hold its key rates overnight.

The US Federal Reserve on Wednesday announced the decision to hold the rate steady between 5.25 percent and 5.50 percent. It raised the rate by a quarter percentage point to the current level in July.

"As shown in the recent FOMC meeting, the possibility over the protracted high interest rates have moved up by another notch, sparking the possibility of expanded volatility in the global financial market," Choo said during an early morning meeting.

"The government and the Bank of Korea will stay vigilant and proactively cope with the situation under water-tight coordination," he added.

The gap between the two countries' key rates remained at an all-time high of 1.75-2.0 percentage points.

Choo, however, said the South Korean financial market, including securities and foreign exchange sectors, remains stable despite such uncertainties.

"As the global economic uncertainties escalate amid the prolonged monetary tightening and higher oil prices, the government and the central bank will stay alert and closely monitor the market. When necessary, we will take actions under a contingency plan in a timely manner," he added. (Yonhap)