BOK Vows to Prop Up Economic Growth in 2013 

(MENAFN - Qatar News Agency) South Korea's central bank said Thursday that it will focus its 2013 monetary policy on bolstering the economic recovery by closely watching risk factors at home and abroad, South Korea's News Agency (Yonhap) reported.

In its monetary policy report for next year, the Bank of Korea (BOK) said it will make efforts to prevent the continuation of low growth from eroding the country's growth potential while maintaining price stability.

The report came as the Korean economy is likely to grow some 3% next year, running below its long-term potential growth rate of around 3.8%.

Asia's fourth-largest economy is expected to grow about 2% this year on weak exports and sluggish domestic demand. The BOK cut the key rate twice in July and October to 2.75% to help prop up the growth.

The report gives weight to market players' bet that the BOK may cut the rate again next year when the new government will be inaugurated, analysts said.

The BOK also added that it plans to keep a close tab on cross-border capital movements and draw up market-stabilizing measures by managing the macro-prudential measures flexibly if capital outflows increase.

"The central bank will continue to make up for contingent plans to brace for possible deterioration of the eurozone debt crisis and geopolitical risks in North Korea and the Middle East," it added.