At a press conference in Marrakesh, Morocco, Bank of Korea (BOK) Governor Rhee Chang-yong predicted that South Korea’s inflation rate will reach the 3 percent mark by the end of 2019 and will hit the Bank’s 2 percent target by 2024. In September, consumer prices had grown by 3.7 percent year-on-year, which was the highest rate since April, due to higher oil costs and more expensive agricultural products. In August, the rate had been 3.4 percent, while in July it was 2.3 percent.
Rhee noted that the Bank is keeping a close eye on foreign exchange rates against the U.S. dollar as the United States may continue its monetary tightening policies and raise its interest rates. He also said that South Korea can still achieve more than 2 percent growth through labor sector reforms and by using female and immigrant workers.
The Governor added that the economic slowdown should be addressed through structural reforms, not increased expenditure. He also mentioned that it is too early to assess the impact of the Israel-Hamas conflict on the financial market.