Bank of Korea to consider monetary policy trade-offs: governor By Reuters

SEOUL (Reuters) – South Korea’s central bank will consider trade-offs between the recent disinflationary trend, growth and financial stability in its future monetary policy operations, its governor said on Tuesday.

Governor Rhee Chang-yong said in his speech to a parliamentary session that disinflation is likely to continue after recent positive signs, while noting a pick-up in household debt growth and increased volatility in foreign exchange markets.

The Bank of Korea is expected to keep its benchmark interest rate at a 15-year high of 3.50% on Thursday through the third quarter of 2024, before cutting it by 25 basis points in the final quarter, around the same time as the U.S. Federal Reserve is likely to start easing policy, according to a Reuters poll.