SEOUL-- South Korea's inflation outlook for this year was slightly revised up by the Asian Development Bank (ADB), but it was still below the Bank of Korea's (BOK) target, a recent report showed Saturday.

The Manila-based lender expected South Korea's inflation to grow 1.8 percent this year, compared with a previous forecast of 1.7 percent. The BOK's inflation target for this year is 2 percent.

Although South Korea's economy is expected to grow at a better-than-expected pace amid an eased monetary policy, there is little sign that economic recovery is increasing inflationary pressures.

The nation's inflation stood at 1.9 percent in June.

Most analysts believe that South Korea's central bank will begin tightening its monetary policy in 2018, despite expectations that the U.S. Federal Reserve may again raise its key rate by the end of this year.

Source: Yonhap News Agency