BoK flags inflation to stay higher for longer

Higher costs: A vendor waits for customers at Namdaemun market in Seoul. The BoK sharply raised its inflation view to 3.1% for this year from its earlier 2% view. — AFP

SEOUL: The Bank of Korea (BoK) has warned that inflation will stay well above 3% for a considerable time to come, after keeping its policy normalisation on hold until a new leader takes the helm of the central bank.

The South Korean central bank yesterday left its seven-day repurchase rate at 1.25% in the last decision overseen by governor Lee Ju-yeol.