Bank of Korea to keep S. Korea's inflation target at 2%, starting 2019
- 5 years ago
한은 "물가안정목표 2% 유지...내년 통화정책 완화기조"
The nation's central bank is going to keep its inflation target unchaged, at two percent.
The BOK has been setting new targets every three years since 2004, but starting next year, it will remain at 2 percent flat,... without a specified timetable.
Ko Roon-hee explains further.
In the new year, South Korea's central bank is going to keep its inflation target at two percent, where it's been since 2016.
The Bank of Korea's inflation target is set based on the year-on-year changes in the consumer price index.
According to officials on Wednesday, the two-percent target is not only considered the optimal rate of inflation for the South Korean economy...., but is also on par with many of the world's other major central banks, like the U.S. Federal Reserve.
The BOK also pointed out that it did not specify an exact timeline this time... because inflation has been steady over the last ten years like in other advanced countries.
For instance, South Korea's consumer price index rose two percent on year in November, on par with the central bank's target for the second month in a row.
To better communicate with the public about the inflation target, the BOK plans to release reports about how it is implementing related policies and hold press conferences twice a year.
The announcement came as part of the central bank's monetary policy for 2019.
It said it plans to keep its accomodative policy, meaning generally lower interest rates to make borrowing cheaper, which encourages spending, investment and growth.
During this process, the BOK aims to monitor the possibility of financial imbalances due to household debt and external uncertainties such as the U.S.-China trade conflict.
When talking about economic growth overall, the central bank expects it will be driven mainly by exports and private consumption... thanks to the growing global economy and the government's active fiscal spending.
Ko Roon-hee, Arirang News.
The nation's central bank is going to keep its inflation target unchaged, at two percent.
The BOK has been setting new targets every three years since 2004, but starting next year, it will remain at 2 percent flat,... without a specified timetable.
Ko Roon-hee explains further.
In the new year, South Korea's central bank is going to keep its inflation target at two percent, where it's been since 2016.
The Bank of Korea's inflation target is set based on the year-on-year changes in the consumer price index.
According to officials on Wednesday, the two-percent target is not only considered the optimal rate of inflation for the South Korean economy...., but is also on par with many of the world's other major central banks, like the U.S. Federal Reserve.
The BOK also pointed out that it did not specify an exact timeline this time... because inflation has been steady over the last ten years like in other advanced countries.
For instance, South Korea's consumer price index rose two percent on year in November, on par with the central bank's target for the second month in a row.
To better communicate with the public about the inflation target, the BOK plans to release reports about how it is implementing related policies and hold press conferences twice a year.
The announcement came as part of the central bank's monetary policy for 2019.
It said it plans to keep its accomodative policy, meaning generally lower interest rates to make borrowing cheaper, which encourages spending, investment and growth.
During this process, the BOK aims to monitor the possibility of financial imbalances due to household debt and external uncertainties such as the U.S.-China trade conflict.
When talking about economic growth overall, the central bank expects it will be driven mainly by exports and private consumption... thanks to the growing global economy and the government's active fiscal spending.
Ko Roon-hee, Arirang News.