SEOUL: South Korea's central bank is ready to intervene should upward pressure on interest rates become too great or the won exchange rate become too volatile after the US Federal Reserve starts raising interest rates next year, an senior official said.
"Once the US begins to raise interest rates that will affect global rates and South Korea cannot remain uninfluenced," Kim Jun-il, a deputy governor and chief economist at the Bank of Korea, told a news conference, adding that the Fed was expected to increase rates next year.
"If there is herd behaviour or exaggerated concerns that move us to believe the market is moving too much, the central bank will intervene and stabilise it," Kim said.
Kim expected the Fed to increase rates at a gradual pace once it does begin to act, and said that even if there are shocks in South Korea's markets due to the change, they will be at a manageable level.
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