The Bank of Korea has released a statement indicating that, amid escalating uncertainty in global markets, it will maintain a vigilant watch over market developments. During the Mid-Autumn Festival holiday, government bond yields in major economies experienced a notable surge, driven by shifts in monetary policy expectations. This development has further heightened uncertainty within global financial markets. The Bank of Korea cautions that the volatility in domestic financial and foreign exchange markets may escalate, contingent upon factors such as the progress of U.S.-Iran negotiations, concerns regarding the fiscal health of major economies, and fluctuations in expectations surrounding the artificial intelligence sector. Consequently, the Bank of Korea will closely monitor market trends and remain on high alert to prevent any potential escalation of volatility in local markets.
