SEOUL– The nominee to lead the Bank of Korea (BOK) said Sunday inflationary pressure will likely remain high for a considerable period of time and stressed a focus on efforts for price stability.
Rhee Chang-yong made the remarks in a written response to a lawmaker’s question on the direction of the central bank’s monetary policy, as he prepares for a confirmation hearing scheduled for Tuesday.
“Inflationary pressure will likely persist for a considerable period of time amid the economic recovery. It is desirable for the BOK to promote price stability by adjusting its accommodative policy stance,” he said.
The BOK raised the benchmark interest rate by a quarter percentage point to 1.5 percent on Thursday, the fourth rate hike since August last year, to put a lid on inflation and high household debt.
South Korea’s consumer prices rose more than 4 percent for the first time in over 10 years in March as crude oil and other commodity prices shot up amid Russia’s war with Ukraine.
Rhee said the government and the BOK need to closely communicate to coordinate fiscal and monetary policies if the incoming government’s push to create another extra budget stimulates inflation.
Source: Yonhap News Agency