(MENAFN) The Bank of Korea (BOK) announced that it decided to reduce its mid-term inflation target band to between 2.5 and 3.5 percent for 3 years through 2015, reported Xinhua News.
The central bank said that several factors were taken into consideration when it decided to lower the inflation target, such as the recent trend of stable consumer prices, the expectation for lower inflation and the need to control inflation in a tight manner
It added that it would reinforce its responsibility for anchoring consumer price inflation by lessening the range of inflation target, through alleviating inflation volatility
It is worth noting that the country's consumer price inflation was forecasted to remain under 3 percent for 3 years to 2015 as a result of the expected low inflationary pressure on the demand side caused by the European fiscal crisis.
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