Bank of Korea to adopt 2% target from 2016
Central bank scraps its target range in favour of a fixed point
The Bank of Korea will lower its inflation target to 2% next year, it announced today, Dec. 16.
The central bank reviews its target every three years, in consultation with the government. Since 2013, it has aimed to keep inflation within a range of 2.5% to 3.5%.
It will now scrap the range in favour of a fixed point, 2%, from 2016 to 2018. Its decision brings it in line with the prevailing consensus on inflation among advanced economies.
The lower target could still prove challenging. Annual
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