S Korea monetary policy to stay loose as sentiment weakens

Seoul

SOUTH Korea's central bank pledged to keep monetary policy loose next year after its survey showed December consumer sentiment at the weakest in 20 months while inflation expectations were at the lowest on record.

The Bank of Korea (BOK), in its 2015 policy statement, said on Wednesday that some reduction in "the magnitude of policy easing" was possible should inflation pressure rise next year. But the central bank added that it would be "careful" even if this happens.