South Korea government think tank says loose monetary policy should continue
Reuters
Published May 13, 2021 04:10
SEOUL (Reuters) - South Korea's top government think-tank on Thursday called on the central bank to maintain loose monetary policy for the time being and raised its economic growth forecasts for the current year.
"As the economic recovery has not been strong, and since the trend of inflation has been underperforming the target inflation for a long while, the need to adjust the monetary policy stance is not high for now," the state-run Korea Development Institute (KDI) said in a bi-annual report on the economy.
"Accommodative monetary policies should stand to support economic recovery for the time being."
Still, the KDI raised its economic growth forecast for this year to 3.8% from 3.1% previously, citing robust chip exports and capital investments.
The Bank of Korea (BOK) on April 15 kept the seven-day repurchase rate [KROCRT=ECI] unchanged at 0.5%, as expected, amid concerns that rising coronavirus cases could derail the economic recovery.
The KDI's new projection comes after the government raised this year's growth forecast to 4% this week.
The BOK sees the economy expanding at 3% to 4% this year after contracting by 1.0% in 2020.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.