Bulletin Empire
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate
Bulletin Empire
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate
No Result
View All Result
Bulletin Empire
No Result
View All Result

Beware of Market Volatility: Bank of Korea Warns of More Rate Hikes Ahead

Logan by Logan
August 30, 2022
in Economy
0
Beware of Market Volatility: Bank of Korea Warns of More Rate Hikes Ahead

Image Source- Getty Images

399
SHARES
2.3k
VIEWS
Share on FacebookShare on Twitter

As markets around the world prepare for further rate hikes from the U.S. Federal Reserve, the Bank of Korea issued a warning on Tuesday of “increased volatility.”

“There is a high chance of increased volatility whenever the U.S. Federal Reserve makes a policy rate decision and the global finance and foreign exchange market has to digest it,” according to a text message from the central bank, BOK Governor Rhee Chang-yong.

Powell’s remarks about the U.S. central bank’s intentions to keep raising rates in September, according to Rhee, were “not much different” from South Korea’s position during the central bank’s meeting in August.

However, Rhee stated that the Bank of Korea will “closely monitor the Fed’s decision and its impact at home and abroad.” The Bank of Korea will not alter its existing monetary policy.

Rhee told Reuters last week at Jackson Hole that it was improbable for the BOK to complete its rate-hike cycle before the Fed.

“We are now independent from government, but we are not independent from the Fed,” Rhee informed. “So if the Fed continues to increase the interest rate, it will have a depreciation pressure for our currency.” Rhee then made the following remarks about the increase in interest rates: “Whether we can end earlier – I don’t think so.”

Image Source- Getty Images

After the benchmark Kospi sank more than 2% on Monday and the Korean won hit its lowest point in more than 13 years, South Korean markets recovered the next day, on Tuesday.

First budgetary reduction in 13 years

The administration of South Korea also declared on Tuesday that it would reduce yearly government spending for the first time in more than ten years.

After two supplementary budgets, the finance ministry presented its first budget proposal for 2023, which at 639 trillion won ($473 billion) was 6% less than this year’s spending. If no further supplementary budgets are announced, this would be the first yearly decrease since 2010.

The country is announcing a “total shift” in its fiscal policy “from expansionary to sound financing,” according to a statement from the finance ministry.

Tags: Bank of KoreaBOKcurrent monetarydepreciation pressure for our currencyFedFed signals more rate hikesFederal Reservefinance ministryFirst spending cut in 13 yearsforeign exchange marketfrom expansionary to sound financingglobal financeglobal markets brace for future hikeshigh chance of increased volatilityimpact at home and abroadincrease the interest rateincreased volatilityInflationInflation In USKospimarket volatilityraising interest ratesrate decisionrecessionSouth Korean stocksU.S. Federal Reserve
Previous Post

How First Solar’s New U.S. Panel Factory is a Win for the Inflation Reduction Act

Next Post

Finally, some relief! Fewer Americans are living paycheck to paycheck

Next Post
Finally, some relief! Fewer Americans are living paycheck to paycheck

Finally, some relief! Fewer Americans are living paycheck to paycheck

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

3 Smart Steps to Take If You Have $1,000 in the Bank
Make Money

3 Smart Steps to Take If You Have $1,000 in the Bank

by Logan
October 20, 2022
0

You're missing out if you keep a lot of money in your bank account. A significant accomplishment is amassing $1,000...

Read more
8 Legit Ways to Make Extra Cash

8 Legit Ways to Make Extra Cash

October 20, 2022

Category

  • Arts
  • Business
  • Economy
  • Entertainment
  • Finance
  • Lifestyle
  • Make Money
  • Politics
  • Real Estate
  • Science
  • Sports
  • Stock Markets
  • Technology
  • Uncategorized
  • World

Follow Us

  • Contact Us
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms & Conditions

© 2022 Bulletin Empire - All rights reserved by Bulletin Empire.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Finance
  • Science
  • Technology
  • Arts
  • Lifestyle
  • Real Estate

© 2022 Bulletin Empire - All rights reserved by Bulletin Empire.