SEOUL (Reuters) – South Korea’s central bank chief said on Monday the bank would maintain its accommodative monetary policy as a recent surge in coronavirus infections within the country will likely weaken its economic recovery.
“The local economy was seen improving as sluggishness in exports and consumption has eased … But the recent surge in domestic COVID-19 infections is expected to weaken the economic recovery,” Bank of Korea Governor Lee Ju-yeol said in a prepared speech for parliamentary session.
Lee also added the bank would closely monitor the impact of coronavirus on the economy, effects of previous policy responses, rising household debt and real estate market.
The BOK holds its monetary policy meeting on Thursday.
Reporting by Joori Roh; Editing by Sam Holmes