The Bank of Korea has revealed that it will maintain its easy monetary policy.
 
The central bank disclosed the stance in a report on money and credit policies submitted to the National Assembly on Tuesday.
 
In the report, the central bank said the nation’s economy is seeing smooth recovery and forecast that inflation will continue to see low growth.
 
The report also said the bank will keep a close eye on situations at home, noting that global financial markets could see significant fluctuations due to instability in the Chinese financial system.
 
On the U.S. possibly raising its key interest rate, the report said there is little possibility that foreign investments in the South Korean market will be taken out en masse in a short period of time.
 
It also stressed that the central bank has sufficient capacity to respond to a possible U.S. interest hike as its foreign exchange reserves have grown sharply.