Anchor: South Korea's central bank revised up its growth outlook for the nation this year from three to four percent, on the back of a rapid expansion in exports and the government's fiscal policies to stimulate its economy. However, amid lingering uncertainties surrounding COVID-19, the bank left its key rate steady at point-five percent.
Choi You Sun reports.

Report: The Bank of Korea(BOK) on Thursday forecast the economy to expand four percent this year, up one percentage point from its previous outlook in February. If it meets expectations, it would be the fastest growth in eleven years.

The revision comes as the country’s exports in April spiked 41-point-one percent on-year to 51-point-19 billion dollars, the biggest on-year jump in more than a decade. 

Speaking to reporters, BOK Governor Lee Ju-yeol said the adjustment took into account the faster-than-expected recovery at home, as well as improving consumer sentiment.

The central bank lifted its growth outlook for next year as well, from two-point-five to three percent.

The BOK also revised up its forecast for inflation this year from one-point-three to one-point-eight percent, in line with rising oil and agro-fishery product prices.

Despite concerns over inflation amid an expansionary policy that has lasted for over a year, the central bank froze its key policy rate on lingering uncertainties surrounding the pandemic and vaccinations.

Regarding a possible hike within the year, Governor Lee said the bank will assess the speed of the nation's economic recovery before making its decision. He said policymakers can't be hasty about normalizing rates, but that there are also side effects when they hold off on taking action.
Choi You Sun, KBS World Radio News.