The Bank of Korea said it will adjust “appropriately” the degree of its eased policy while looking at developments in downside and upside risks to the global economy.
The central bank also said in a monetary policy report submitted to the National Assembly today that authorities will be on the alert for a possible deepening of financial and economic imbalances driven by increases in household debt and asset prices following an extended period of low interest rates.
Authorities will enhance measures to guard against volatile international capital flows if needed, and will act “swiftly” if they detect any signs of market instability, the bank said.
The bank provides a report on its monetary policy to lawmakers at least twice a year, according to the law.
To contact the reporter on this story: Eunkyung Seo in Seoul at firstname.lastname@example.org;