Bank of Korea Governor Shin Hyun-song said on the 22nd that core inflation will run above the central bank's target next year before approaching 2% in 2028.
Speaking at a press conference following the monetary policy decision, Shin said the August forecast of 2.5% core inflation for next year now looks too low. "We put next year's core inflation rate at 2.5% in the August projection, but we now see that as low and expect it to come in somewhat higher," the governor said.
Shin said the central bank's price stability target remains 2%. "The principle is to achieve it through monetary policy while taking growth and other conditions into account, rather than hitting it immediately," he said. He added that inflation is expected to stay above the target next year and come close to the target level around 2028.