Checking the Impact of US Pivot in ‘Macro Economy and Financial Meeting’ on the 19th
“Showing signs of emerging from global compound crisis… Uncertainty remains”
“Implement additional management measures in case of overheating in housing and increase in household debt”, ‘[Sejong=Edaily Kim Eun-bi Reporter] Vice Premier and Minister of Economy and Finance Choi Sang-mok said on the 19th regarding the US rate cut, “We will closely cooperate with relevant agencies with heightened vigilance to adapt to changes in domestic and international situations.”‘,
,
,
|
, ‘Vice Premier Choi held a joint ‘Macro Economy and Financial Meeting’ with relevant agencies at the Seoul Regional Procurement Office on this day, to review the impact of the US Federal Open Market Committee (FOMC) rate cut decision on domestic and foreign financial and foreign exchange markets and discuss response strategies.’,
,
, ‘The Fed lowered its benchmark interest rate by 0.5 percentage points at the FOMC on the 18th (local time).’,
,
, ‘Vice Premier Choi assessed that “in the wake of the US Fed’s monetary policy pivot, the global compound crisis triggered by the overlap of liquidity overkill in the pandemic response process and supply chain shocks from the Russia-Ukraine war is showing signs of emerging.”‘,
,
, ‘However, he stated, “As seen in the sharp drop in global stock markets originating from the US in early August, there is still the possibility of increased financial market volatility during the monetary policy transition process” and added, “Geopolitical uncertainties in the Middle East, Ukraine, and the US presidential election also present significant uncertainties.”‘,
,
, ‘Vice Premier Choi emphasized, “As external uncertainties persist, we will continue to operate a 24-hour joint monitoring system with relevant agencies” and stated, “If market volatility expands excessively, we will maintain a comprehensive response system based on scenario-based contingency plans to swiftly implement market stabilization measures.”‘,
,
, ‘Regarding risks related to household debt, the real estate market, and PEF, he mentioned, “Expediting the 8.8 real estate supply measures, if the housing market overheats or household debt increases rapidly, we will boldly implement additional management measures at the right time.”‘,
,
, ‘He continued, “We will also guide the orderly landing of real estate PEF. It is judged that the impact on the financial and construction sectors from the initial feasibility assessment is limited” and added, “After finalizing evaluations by November, we will transition to a continuous assessment system.”‘,
,
, ‘In addition, Vice Premier Choi mentioned regarding domestic activation and stable livelihoods, “The government will spare no effort to further increase the speed of recovery in domestic consumption and stable livelihoods by focusing more on price stability, providing tailored support for low-income groups, small business owners, construction, etc., and actively promoting cross-agency investment activation systems.”‘,
,
,