SEOUL--The Bank of Korea said Thursday it will prioritize economic recovery when it reviews its official interest rate each month next year, and be vigilant toward consumer price inflation, which has shown signs of easing recently.
"In conducting monetary policy, the bank, while firmly anchoring the basis for price stability, will closely monitor risk factors and changes in financial and economic conditions at home and abroad, and place emphasis on supporting the economy's recovery of growth.
It will also strive for the enhancement of policy effectiveness," the central bank said after a monetary policy board meeting on next year's policy direction.
The BOK said it expects the economy to show "mild recovery," but uncertainty will run high due mostly to the euro area fiscal crisis.
The growth rate is likely to gradually increase from the middle of next year, primarily thanks to global economic recovery, it said.
The bank in October had forecast gross domestic product to grow 2.4% in 2012 and 3.2% in 2013. Earlier Thursday, the government said it expects GDP to expand 2.1% this year and 3.0% next.
The BOK said upward pressure on consumer prices isn't likely to be considerable owing primarily to easing demand-side pressure.
In October it said its inflation target range for the three years from 2013 was 2.5% to 3.5%, narrower than the 2% to 4% range for 2010-2012, reflecting recent stabilization of prices.
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"In conducting monetary policy, the bank, while firmly anchoring the basis for price stability, will closely monitor risk factors and changes in financial and economic conditions at home and abroad, and place emphasis on supporting the economy's recovery of growth.
It will also strive for the enhancement of policy effectiveness," the central bank said after a monetary policy board meeting on next year's policy direction.
The BOK said it expects the economy to show "mild recovery," but uncertainty will run high due mostly to the euro area fiscal crisis.
The growth rate is likely to gradually increase from the middle of next year, primarily thanks to global economic recovery, it said.
The bank in October had forecast gross domestic product to grow 2.4% in 2012 and 3.2% in 2013. Earlier Thursday, the government said it expects GDP to expand 2.1% this year and 3.0% next.
The BOK said upward pressure on consumer prices isn't likely to be considerable owing primarily to easing demand-side pressure.
In October it said its inflation target range for the three years from 2013 was 2.5% to 3.5%, narrower than the 2% to 4% range for 2010-2012, reflecting recent stabilization of prices.
nasdaq.com
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