Bank Of Korea To Maintain Underlying Monetary Easing Stance

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Thursday, the Bank of Korea said it will maintain the underlying stance of monetary easing to support the economic recovery. However, the central bank intends to moderate the degree of accommodativeness progressively in 2010.

"Adjustment of the degree of monetary-policy easing will be calibrated appropriately, taking into overall consideration financial and economic circumstances domestically and internationally," the central bank said.

Further, the BoK will give greater attention to the possibility of the Korean economy experiencing imbalances arising from the continuance for a prolonged period of the policy of monetary accommodativeness. Also, every effort will be made to bring about the convergence of the rate of increase in consumer prices upon the mid-point of the inflation target from a medium term perspective. The central bank vowed to keep a close watch on asset price movements.

The BoK will take measures to unwind liquidity support, which increased in the course of responding to the financial crisis. "Quotas under the Aggregate Credit Ceiling will be progressively adjusted downwards in the light of financial market conditions and the method of its operation will also be refined," the BoK added.

Thursday, the Bank of Korea said it will maintain the underlying stance of monetary easing to support the economic recovery. (Market News Provided by RTTNews)