SEOUL, May 11 (Reuters) - South Korea's top government
research body has cut its economic growth forecast for this year
to 1.5% from its earlier view of 1.8%, saying a deeper and
longer export slump than previously expected is likely to offset
resilient private consumption.
The Korea Development Institute's latest projection compared
with the 2.6% that Asia's fourth-largest economy posted last
year which matched the average growth rate of the decade through
2022.
It also cut its inflation forecast to 3.4% from the previous
3.5%, while recommending the Bank of Korea maintain a monetary
policy skewed toward containing inflation that is far beyond the
central bank's 2% target.
Still, the agency stopped short of calling for additional
interest rate increases as economists generally see the central
bank's rate-hike cycle as over after a combined 300 basis-point
rise conducted since August 2021.
The Bank of Korea has forecast this year's economic growth
at 1.6% but its governor, Rhee Chang-yong, in April said the
bank would likely lower the forecast at a regular update on May
25.
(Reporting by Choonsik Yoo; Editing by Christopher Cushing)
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