Seoul, Aug 1 (IANS): South Korean Finance Minister Choi Sang-mok on Thursday vowed to beef up monitoring of the global financial market and devise contingency plans to better respond to uncertainties regarding interest rates in the US and other nations.

Choi made the remarks during a macroeconomic meeting meant to assess the Federal Reserve's rate-setting meeting, where it kept the benchmark interest rate intact at between 5.25-5.5 per cent for an eighth straight time, Yonhap news agency reported.

But Fed Chair Jerome Powell said that "a reduction of policy rate could be on the table at the September meeting," noting some progress on the path toward the inflation target of 2 per cent.

"Uncertainties linger over when and how much the US will cut interest rates. The government will remain vigilant and maintain close coordination among institutions concerned for proper responses," Choi said.

The Fed's latest freeze also kept the gap between the key rates of South Korea and the US at up to 2 percentage points.

The domestic financial market remains relatively stable, but there are chances of greater volatility over the Middle East crisis and the US elections, Choi said, pledging responses in accordance with contingency plans, if needed.

Policy focus will also be on such risk factors as household debts and real estate project financing, the minister said.