Bank of Korea Deputy Governor Yoo Sang-dai stated that uncertainty over the US Federal Reserve's rate path has deepened following the latest FOMC decision to hold benchmark rates at 3.5-3.75% for a second consecutive meeting, amid persistent Middle East instability. The BOK will monitor risks closely and act if needed to stabilize markets.
Yoo made the remarks Thursday at a market assessment meeting, noting the FOMC outcome and external risks like ongoing Middle East tensions have amplified policy uncertainty. The Fed maintained its projection of one rate cut this year. Fed Chair Jerome Powell highlighted surging oil prices as adding to inflation pressures, urging caution on future easing.
This hold follows earlier rate reductions, including a quarter-point cut to the current range late last year. Yoo pledged: 'We will remain on high alert and closely monitor internal and external risk factors and their impact on markets and the economy,' ready to deploy timely stabilization measures if required.
