South Korea’s vice finance minister said on Thursday the government will prepare for the possible effects of the U.S. Federal Reserve’s interest rate increases on markets, although there was little impact from the latest rate hike overnight. Vice minister Ko Hyoung-kwon added the government will closely monitor financial markets and changes in U.S. monetary policy for volatility that may arise from Fed’s plans to reduce its bond holdings.
The U.S. Federal Reserve lifted interest rates for the third time this year to 1.5 percent on Wednesday, as anticipated, and maintained its forecast for three rate hikes next year.
(Update awaited)