SEOUL (Reuters) - South Korea’s central bank chief said on Wednesday the Bank of Korea would keep interest rates accommodative for now because inflationary pressure is likely to stay weak.
“Inflationary pressure from demand-side isn’t expected to be big for the time being, which warrants keeping monetary policy accommodative to support growth,” Governor Lee Ju-yeol told lawmakers in opening remarks at a confirmation hearing.
Lee was reappointed by President Moon Jae-in to lead the BOK for another four years.
Lee noted the bank will closely monitor risks from high household debt and financial market volatility as it determines interest rates going forward.
Reporting by Cynthia Kim, Dahee Kim; Editing by Eric Meijer