Bank of Korea says its too early to be confident inflation will converge on target level

The Bank of Korea earlier today left is rate unchanged at 3.5%, as expected.

  • Premature to be confident that inflation will converge on the target
  • Will maintain
    restrictive policy stance for sufficient period of time
  • To monitor inflation
  • Growth forecast to
    be consistent with earlier forecast or could be higher
  • To monitor financial
    stability risks
  • To monitor economic
    growth risks
  • To monitor household
    debt growth
  • To monitor
    differentiation in monetary policy operations in major countries
  • To monitor
    developments in geopolitical risks
  • Growth to be
    affected by it sector growth, project finance restructuring
  • Inflation to
    gradually moderate

On the won:

  • KRW recently weakened to dollar due to the strong USD and weak neighbouring currencies

This article was written by Eamonn Sheridan at Source