The Bank of Korea said, on Thursday, that it will maintain the accommodative policy stance next year so as to ensure that the recovery of economic growth continues and consumer price inflation stabilize at the target level.
The economy is forecast to retain its solid trend of growth, at a rate around 3 percent per year.
According to BoK, exports will continue their improvement trend, due to the ongoing recovery of the global economy. At the same time, private consumption is expected to pick up moderately driven in part by an increase in government fiscal spending.
Nonetheless, the bank cautioned that there remain some uncertainties concerning the future growth path.
Inflation is expected to rise to approach its target level under the mixed effects of factors pushing it up, such as increased demand-side inflationary pressures and factors pulling it down including the weakening the base effects related to petroleum product prices, the bank said.
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