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Bank of Korea governor signals flexible approach to monetary easing this year

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The Bank of Korea’s governor, Rhee Chang-yong, has signaled a more flexible approach to monetary easing this year, highlighting the central bank’s readiness to adapt to shifting economic conditions. Speaking at a press briefing, Rhee emphasized the need to balance inflation concerns with supporting economic growth, as South Korea grapples with slowing exports and weak domestic demand.

While inflation has remained within the central bank’s target range, lingering global uncertainties, including fluctuating oil prices and geopolitical risks, may require a cautious recalibration of policy. Rhee’s comments suggest that the Bank of Korea may not adhere strictly to its prior tightening measures, allowing room for data-driven adjustments in response to economic headwinds.

This shift underscores the central bank’s priority to maintain financial stability while fostering conditions for recovery, setting a measured tone as policymakers assess the challenges of 2025.

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