Rhee Chang-yong, governor of the Bank of Korea, said on the 10th that the likelihood of stagflation hitting the Korean economy at this point is low. Stagflation refers to a phenomenon in which price increases and an economic slowdown occur simultaneously.

The governor stated accordingly at a press briefing held right after the monetary policy direction meeting that day.

Rhee Chang-yong, governor of the Bank of Korea, strikes the gavel during the plenary meeting of the Bank of Korea's monetary policy committee at the central bank's main building in Jung-gu, Seoul, on the 10th. /Courtesy of News1

The governor said, "Prices are rising now and the growth outlook is falling, but the situation is manageable to some extent," adding, "If the Iran situation is resolved, the likelihood of stagflation is low."

The governor said, "Of course, if energy-related infrastructure is destroyed, the effects could be prolonged even if the situation is resolved," adding, "If things reach the worst-case scenario, it would be hard to deny the possibility of stagflation."

However, the governor said, "It is impossible to predict what will happen in two weeks when the truce ends, and the war situation is changing day by day," adding, "It is hard to speak in detail because we cannot anticipate how the situation will unfold."

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