South Korea Central Bank Flags Chances of Faster-Than-Expected Inflation Pace

South Korea
FILE PHOTO: A shopkeeper wearing a mask to prevent contracting the coronavirus waits for a customer at a traditional market in Seoul, South Korea, February 27, 2020. REUTERS/Heo Ran

SEOUL ⸺ South Korea’s central bank on Thursday warned that consumer inflation could gain traction at a faster-than-expected pace with the ongoing recovery from the pandemic.

“Inflation could temporarily increase due to normalization of economic activities with ongoing vaccination, and as pent-up demand shows up,” the Bank of Korea (BOK) said in its monetary policy report.

South Korea’s consumer inflation accelerated to a 13-month high in February on improving domestic demand and rising global oil prices, further signalling a gradual recovery in Asia’s fourth-largest economy.

The BOK in February raised this year’s inflationoutlook to 1.3% from 1.0% earlier, while keeping the policyinterest rate unchanged at a record low of 0.50%. 

The BOK also said it will closely monitor local bond yields of long-term maturity and take appropriate measures should volatilities worsen.

Continue Reading Below ↓

Reporting by Cynthia Kim; Editing by Rashmi Aich; Reuters

Total
1
Shares

Leave a Reply

Previous Post
Dorsey

Twitter’s Dorsey To Convert Proceeds From Auction of First Ever Tweet to Bitcoin

Next Post
Philippines

Philippines’ First Billion Dollar IPO Seeks To Tap Into Meat Alternative Boom

Related Posts