Bank of Korea has declined the growth expectations fo South Korea's economy during 2012 among the instability in crude oil prices and the continues worries over Europe's debt crisis.
Moreover, the Bank of Korea is expecting a growth by 3.5% in South Korea during 2012, compared with the previous expectation of 3.5%. Inflation is expected to incline by 3.2% during the year lessa than previous expectations of 3.3%.
Korea's economy is witnessing critical obstacles that may hinder the nation's economy, like the political instability especially after the launched long-range rocket by North Korea, and the recent environment in Europe's zone that negatively affected on exports to Europe.
Therefore, all these factors pushed on the Bank of Korea to keep its monetary policy unchanged last week for the tenth consecutive meeting according to the current instability in political and economic sides.