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South Korea central bank vows to retain accommodative policy in 2015

Wednesday, December 24, 2014 - 10:41
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South Korea's central bank said on Wednesday it would maintain an accommodative monetary policy stance in 2015, noting the recovery of Asia's fourth-largest economy would be modest and inflation would stay low.

[SEOUL] South Korea's central bank said on Wednesday it would maintain an accommodative monetary policy stance in 2015, noting the recovery of Asia's fourth-largest economy would be modest and inflation would stay low.

The Bank of Korea said in a statement it would reduce "the magnitude of policy easing" if inflation pressures rose, adding however that any policy tightening would be made "carefully"while taking into account various indicators.

It issued the statement after its monetary policy committee held the second of two monthly meetings on Wednesday following a rate-setting meeting on Dec 11.

The central bank added it would take action to stabilise markets in case any excessive movement in the won against the dollar or yen affects the real economy.

REUTERS