S Korea Finance Minister reaffirms will to stabilise local bond market

S Korea Finance Minister reaffirms will to stabilise local bond market
FILE PHOTO: A currency dealer works in front of an electronic board showing the exchange rate between the South Korean won and the U.S. dollar (L) at a bank in Seoul, South Korea, March 16, 2017. REUTERS/Kim Kyung-Hoon

SEOUL : South Korea’s finance minister on Thursday reaffirmed the government’s determination to stabilise the local bond market in case of increased volatility with fast-rising interest rates.

“The government and central bank will take emergency measures of treasury bond buy-backs or repurchase schemes at an appropriate time in case there is excessive movement in the local bond market,” finance minister Choo Kyung-ho said during a policy meeting with other top economic officials.

South Korea’s finance minister, central bank governor and financial regulator chief attended the meeting to discuss local market implications of the U.S. Federal Reserve’s 75 basis point interest rate hike on Wednesday.

Financial market authorities will also revisit other stabilising measures used during past economic crises in the event of excessive one-sided price swings, the minister added.

 

 

Source: Reuters