S. Korea braces for possible volatility over global monetary paths

Finance Minister Choi Sang-mok on Thursday noted the possibility of greater market volatility over varying monetary policy steps among major nations, vowing enhanced monitoring and timely responses. They made the point during an emergency macroeconomic meeting meant to assess the results of the Federal Reserve's rate-setting meeting that ended Wednesday (U.S. time), where it held the benchmark interest rate steady at between 5.25-5.5 percent. The U.S. central bank also signaled that it plans three cuts before the end of this year. "The Fed's decision is expected to contribute to the stabilization of the global financial market. But the possibility of greater volatility cannot be ruled out as major nations, such as in the U.S. and Japan, have taken different policy steps," Choi was quoted as saying by the finance ministry. Earlier this week, the Bank of Japan raised its borrowing rate for the first time in 17 years, lifting the short-term rate to around zero to 0.1 percent from minus 0.1 percent. The Sout h Korean financial authorities vowed to beef up market monitoring and work more closely among relevant institutions for timely responses based on contingency plans. The emergency meeting was also attended by Bank of Korea Gov. Rhee Chang-yong; Kim Joo-hyun, the chair of the Financial Services Commission; and Lee Bok-hyun, chief of the Financial Supervisory Service. Source: Yonhap News Agency