Finance Minister Choi Sang-mok on Thursday called for beefing up an “external safety net” to better respond to uncertainties regarding interest rates in the United States and other nations.

Choi made the remarks during an emergency macroeconomic meeting meant to assess the Federal Reserve’s rate-setting meeting Wednesday (U.S. time), where it kept the benchmark interest rate at between 5.25-5.5 percent for a seventh straight time.

The Fed also signaled fewer rate cuts than previously estimated.

“Uncertainties continue over when and how much the U.S. will cut interest rates. We cannot rule out the possibility of growing volatility in the global financial market,” Choi said, calling for extra vigilance and close cooperation among institutions concerned.

Choi stressed the need to strengthen external safety valves against such uncertainties, and the government will swiftly come up with tax incentives and other measures to support companies and the people.

The Fed’s latest freeze put the gap between the key r
ates of South Korea and the U.S. at up to 2 percentage points.

Source: Yonhap News Agency