SEOUL, Dec 15 (Reuters) – South Korea has decided to extend bond market stabilisation programmes through next year, the financial regulator said on Monday, citing risk from monetary policy changes at home and abroad as well as increases in treasury bond issuance.
The Financial Services Commission statement said its bond and short-term money market stabilisation funds of 37.6 trillion won ($25.5 billion) and real estate project financing support programmes worth 60.9 trillion won will be extended through 2026.
The FSC also said it would pre-emptively deploy market stabilising measures if necessary, given growing caution in domestic financial markets and rising bond yields and foreign exchange volatility.
The Bank of Korea kept interest rates unchanged for a fourth straight meeting last month after a weakening won reduced scope for further easing, signalling that the bank could be nearing the end of its rate-cutting cycle.
($1 = 1,474.7800 won)
(Reporting by Jihoon LeeEditing by David Goodman)
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