Financial institution of Korea chief sees extra battle between objectives

© Reuters. FILE PHOTO: South Korea’s new central financial institution governor Rhee Chang-yong speaks throughout his inauguration ceremony in Seoul, South Korea April 21, 2022. SeongJoon Cho/Pool by way of REUTERS

SEOUL (Reuters) – The top of South Korea’s central financial institution mentioned on Sunday it will doubtless face an rising battle between coverage objectives in 2023 because the impact of the latest aggressive coverage tightening materialises in earnest.

“Will probably be a yr when a complicated coverage combine is extra vital than ever attributable to a rising risk of battle between inflation, financial development and monetary stability,” Governor Rhee Chang-yong mentioned in his New Yr’s deal with.

He mentioned a quick cooling of the true property market might trigger monetary market instability, whereas itemizing the warfare in Ukraine and the COVID-19 scenario in China as the primary sources of uncertainty dealing with the nation’s economic system and inflation.