Bank of Korea will strive to stabilize inflation in 2012
2011-12-30 10:52:07
South Korea's central bank said on Thursday that price stability will be its top priority in 2012.
In a yearly policy statement, the Bank of Korea said that it shall conduct monetary policy so as to maintain inflation close to the mid-point of the target. For 2012, the bank aims to keep inflation between 2 and 4 percent.
During 2012, the bank will determine the inflation target for 2013 and after, in consultation with the government.
According to the assessment of BoK, the uptrend in consumer prices will slow, but the pace of decline in inflation is expected to be modest due chiefly to the presence of high inflation expectations.
Further, the bank observed that domestic economic growth will recover in the second half of the year after showing signs of a mild slowdown. However, downside risks will be large, stemming from sovereign debt crisis in Europe and uncertainties concerning North Korea.