South Korea's central bank is determined to take preemptive action to free the economy from inflationary pressure, Bank of Korea Gov. Lee Seong-tae said Monday.
"While keeping in mind the nation's economic situation, the bank plans to act preemptively against inflationary pressure," Lee said in an address to mark the 56th anniversary of the bank's foundation. "To that end, it would be good for the bank to set next year's consumer price target at an early date."
The remark comes after the bank raised its key interest rate by 0.25 percentage point to 4.25 percent Thursday in an attempt to preemptively rein in inflationary pressure as the economy revives.
"The interest rate is enough to boost South Korea's economic revival," Lee said, opening the possibility of a further rate hike.
South Korea's economy will keep expanding in the second half of the year thanks to exports and rising consumer spending, unless the won's value or oil prices soar from now, he added.
SEOUL, June 12 (Yonhap)
Bank of Korea to act preemptively against inflationary pressure |
