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BOK opens blog for better communication with market on policy measures

SEOUL, May 31 (Yonhap) — The Bank of Korea (BOK) on Tuesday announced that it has opened a digital blog on its official website to share comments and explanations on its monetary policy and other policy measures under the efforts to improve communication with market players.

The blog in the communication section of the website first posted two articles regarding the central bank’s recent rate hike decision and revisions to the outlook for inflation and economic growth. They were written by senior BOK officials.

“The BOK launched the blog to share the views of its executive and staff members on pending financial and economic issues,” a BOK official said.

The BOK said the blog posts are personal views of its officials and do not represent the central bank’s official policy guidance.

The launch came as BOK Governor Rhee Chang-yong seeks to enhance transparency in policy-making and avoid misunderstandings and confusion with the market over central bank policy actions.

On Monday, Rhee held a “financial consultation meeting” with local bank executives, an opportunity that had been put on hold for years due to the pandemic. During the closed-door meeting, Rhee explained the reasons behind the BOK’s rate hike decision last week.

Last Thursday, the BOK raised the policy rate by a quarter of a percentage point to 1.75%, the fifth rate hike since August last year, as it struggles to rein in the soaring economy. ‘inflation.

The central bank also sharply raised its inflation outlook for 2022 to a 14-year high of 4.5% from its previous estimate of 3.1%. He lowered his growth forecast for the South Korean economy to 2.7% from 3%.