PM calls for swift measures to cope with economic challenges

▲ Prime Minister Han Duck-soo presides over a coordination meeting on key state affairs at the government complex in Seoul on June 30, 2022. (Yonhap)

PM-economy

PM calls for swift measures to cope with economic challenges

SEOUL, June 30 (Yonhap) -- Prime Minister Han Duck-soo on Thursday called for relevant ministries to swiftly take measures to cope with economic challenges, as the economy is grappling with slowing global growth and soaring inflation.

Han told a policy coordination meeting that a variety of economic challenges, including the COVID-19 pandemic, Russia's invasion of Ukraine and U.S. Federal Reserve's rate hikes, have mounted for the nation's economy.

If the U.S. central bank further raises its key rate, it will likely increase volatility in the nation's financial markets, Han said.

"At first, it is important that relevant ministries respond quickly to economic issues," Han said.

He also urged relevant ministries to come up with measures to support vulnerable people that have been hardest hit by the economic fallout.

In a rare move, Bank of Korea (BOK) Gov. Rhee Chang-yong attended the Thursday meeting, Han's office said.

The country's consumer prices jumped 5.4 percent on-year in May, the fastest rise in almost 14 years, and the BOK warned of faster inflation growth.

Market watchers say the BOK could take more aggressive monetary tightening steps to fight inflation, particularly as the U.S. Federal Reserve hiked the key rate by 0.75 percentage point this month, the sharpest hike since 1994.

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