Korea's central bank is raising the possibility of holding an emergency monetary policy meeting to adjust interest rates amid the sharp fall in local financial markets due to the COVID-19 outbreak.

A Bank of Korea official said Friday that members of the bank's Monetary Policy Board agreed Thursday on the need to convene an emergency meeting to decide on interest rates. The official said the board members were in discussions and would make a decision on whether to convene a meeting shortly.

The Bank of Korea also hinted on Friday that it could intervene in the bond and foreign exchange markets after analyzing the drop in stock prices in major countries and how the crash could influence the aforementioned markets.

The bank said it plans to make active use of policy means to respond to increasing volatility and take measures to stabilize markets if needed through an open market operation while paying attention to bond markets.

It also said it would take necessary measures to ensure that excessive insecurity does not spread in the foreign exchange market.