SEOUL—The Bank of Korea kept its low interest rates steady as expected Thursday but said it will pursue "price stability," offering a new hint of unease about rising inflationary pressures that could prompt monetary tightening in the coming months.
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Bloomberg News
Kim Choong-soo, governor of the Bank of Korea, speaks at a news conference in Seoul, South Korea, on Thursday.
.The central bank, which has been under pressure from the government to support the nation's economic recovery with an accommodative stance, flagged downside risks to Korea's export-oriented economy—Europe's debt problems and steps in China to counter a liquidity-driven real estate price boom—but also expressed optimism about the outlook.
"In the coming months, the Korean economy appears set to sustain its growth trend, helped by the favorable development of exports and increasing consumption and facilities investment," the BOK said in a statement following its policy rate review.
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