SEOUL (Reuters) – South Korea’s central bank and finance ministry said on Friday they agreed the Bank of Korea will need to buy more government bonds if needed to stabilise the local bond market.
The Bank of Korea, the finance ministry and regulators held a meeting on Friday to discuss recent surge in government bond yields as well as consumer price pressures at a time when interest rates are set to rise further, a statement from the bank and the ministry showed.
The BOK said on Feb. 4 it will buy 2 trillion won ($1.67 billion) of government bonds.
($1 = 1,196.8700 won)
(Reporting by Cynthia Kim; Editing by Muralikumar Anantharaman)
