“The economic recovery has strengthened,” the Bank of Korea (BOK) Governor Lee Ju-yeol said at the post-monetary policy press conference on Thursday.
Thursday’s rate decision was unanimous.
Will maintain an accommodative stance for a while.
Private consumption is improving.
Monitoring the coronavirus spread, financial imbalances.
Government’s extra budget to boost growth by 0.2 pct pt.
Preparing for orderly normalization of monetary policy.
Whether or not a rate hike comes this year depends on pace of growth.
Earlier on, the South Korean central maintained the key rate at 0.50% in its May monetary policy meeting, noting that they “will monitor the severity of coronavirus spread.”
The BOK also said that inflation will remain at a high level for some time.
USD/KRW is off the daily highs of 1,119.91 reached on the BOK’s rate decision.
The spot is currently trading 0.11% higher at 1,117.83, with the Korean won remains undermined by the dovish tone.
