Assembly grants BOK supervisory capability

The National Assembly yesterday approved a bill aimed at beefing up the Bank of Korea’s role in coping with financial instability.

On the last day of the extra session, the Assembly passed a revised bill governing the BOK in a 147 to 55 vote, allowing the central bank to keep financial stability as its policy priority, together with price stability.

BOK: Accommodative Monetary Policy Must Be Adjusted

The Bank of Korea said Thursday it must adjust how accommodative its monetary policy stance is to ensure price stability, suggesting the central bank will continue to raise its policy rates to curb rising inflation.

"To prepare against an increase in world economic uncertainties due to the growth in global inflationary pressures and international financial market instability, the degree of monetary policy accommodativeness must be adjusted at an appropriate speed and extent, with an emphasis on ensuring that the basis for price stability is firmly anchored amid continuing sound economic growth," the BOK said in its biannual financial stability report.