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South Korea central bank board members eye exit from stimulus

A majority of the Bank of Korea's seven members at the monetary policy board said the bank should prepare to pull back on the extraordinary stimulus extended during the pandemic, minutes of the May 27 policy meeting released on Tuesday showed.

South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in
FILE PHOTO: South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS/Kim Hong-Ji

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SEOUL: A majority of the Bank of Korea's seven members at the monetary policy board said the bank should prepare to pull back on the extraordinary stimulus extended during the pandemic, minutes of the May 27 policy meeting released on Tuesday showed.

"(The bank) should start to adjust the degree of monetary policy easing at an appropriate time, taking account of the pace of the economic recovery, jobs, inflation trend, as well as financial market situation for the next few months," said a policymaker of the seven-member board, one of at least four members who flagged the need for policy tightening.

Others said the bank needs to review a withdrawal from its loose monetary policy to some extent as inflationary expectations grow.

(Reporting by Cynthia Kim; Editing by Simon Cameron-Moore)

Source: Reuters