Excerpt from the statement by the Bank of Korea:
In Korea, the Committee appraises the economic recovery to be continuing in line with the trend of growth, while exports and consumption have continued their uptrends.
On the employment front, the scale of increase in the number of persons employed has expanded substantially in line with increases in the 50-and-above age group and in the service sector. The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow.
The Committee forecasts that inflation will gradually rise, although it will remain low for the time being due largely to the stability of international agricultural prices. As for the housing market, sales prices in Seoul and its surrounding areas maintained their level of the previous month while the uptrend of those in the rest of the country continued. The rise in leasehold-deposit prices in Seoul and its surrounding areas slowed slightly, while in the rest of the country the same trends of increase as in the previous month were seen.
Looking ahead, while paying close attention to developments in and the influences of external risk factors arising from shifts in major countries’ monetary policies, the Committee will conduct monetary policy so as to keep consumer price inflation within the inflation target range over a medium-term horizon while supporting the continued recovery of economic growth.