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S.Korea says upside, downside risks to growth balanced
January 9, 2014 / 4:51 AM / 4 years ago

S.Korea says upside, downside risks to growth balanced

SEOUL, Jan 9 (Reuters) - South Korea’s central bank said on Thursday that upside and downside risks to the domestic economy’s growth trajectory appear balanced at present, as it kept its 2014 growth forecast unchanged at 3.8 percent.

The Bank of Korea, in a statement, said that potential for global financial market unrest stemming from the U.S. Federal Reserve’s tapering of its quantitative easing programme, greater volatility in the yen’s exchange rate and greater geopolitical risks associated with North Korea pose downside growth risks.

On the other hand, the central bank cited the possibility of faster economic growth in the U.S. and the European Union as upside risks for the local economy.

The central bank earlier on Thursday kept the policy rate unchanged at 2.50 percent, in line with market expectations. (Reporting by Christine Kim and Se Young Lee; Editing by Chris Gallagher)

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