Economics

Bank of Korea Sees Slightly Faster Growth Ahead, Eyes Risks

  • Central bank sees growth, inflation topping previous forecasts
  • Lee cites external risks, financial stability among concerns

The Bank of Korea headquarters in Seoul.

Photographer: Jean Chung/Bloomberg
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South Korea’s central bank held its key interest rate steady on Thursday while upgrading its growth and inflation forecasts for the year.

In its quarterly economic outlook, the Bank of Korea said the economy would grow 2.6 percent this year, slightly faster than the 2.5 percent projected in JanuaryBloomberg Terminal, while inflation would be 1.9 percent, just higher than its previous forecast of 1.8 percent.