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S. Korea’s Inflation May Ease to Below 2.7%, BOK’s Lim Says

South Korea’s consumer inflation may ease to below 2.7 percent this year, Bank of Korea board member Lim Seung Tae said, reiterating a projection made by the central bank in July.

“Our inflation forecast may be lowered in October,” Lim told reporters in Seoul today. “The global and domestic economic environment has changed drastically and thus many are changing their economic outlooks.”

Quantitative easing measures taken by major advanced countries pose a challenge to the South Korean economy and to policy makers, Lim said. Lim was the sole dissenter when the central bank decided to cut the benchmark seven-day repurchase rate to 3 percent in July, according to minutes released on Aug. 28.

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