BoK says Omicron is biggest risk to recovery

Managing risks: Customers browsing through a street stall at Namdaemun market in Seoul. The central bank is mulling when to raise interest rates again following two hikes in the second half of 2021. — AFP

SEOUL: Bank of Korea (BoK) governor Lee Ju-yeol said Omicron is the biggest threat to the economy’s recovery, sounding a cautious note ahead of a policy meeting later this month.

The threat posed by the virus variant comes on top of other external risks including rising global inflationary pressure, policy normalisation by major economies and a possible economic slowdown in China, Lee said in a New Year’s speech delivered to financial industry officials yesterday.