South Korea central bank sets open-ended inflation target of 2.0%

[SEOUL] South Korea's central bank on Wednesday set an open-ended annual inflation target of 2.0 per cent, effective from 2019, unchanged from the target that expires at year-end.

But the Bank of Korea removed the three-year time limit that applied to the current 2.0 per cent target, saying volatility in consumer prices has reduced compared to the prior years.

The BOK will now review the inflation target every two years.

In a separate statement, the central bank said it would maintain the current accommodative monetary policy stance in 2019, but did not elaborate on the near-term direction of rates.

REUTERS