On October 13, Bank of Korea Governor Rhee Chang-yong stated that further appreciation of the won would be beneficial, noting that since the central bank shifted to tightening monetary policy, the significant appreciation of the won has enhanced household purchasing power. During a dialogue with Krishna, Director of the IMF Asia and Pacific Department, at the IMF and World Bank annual meetings in Bangkok on Tuesday, he mentioned that the Bank of Korea will maintain a restrictive monetary policy stance until it is confident that inflation can return to target levels in a timely manner. Rhee also indicated that the strengthening of the won shifts economic growth momentum more towards the domestic economy, helping to alleviate the development gap he referred to as the 'K-shaped economy.' Currently, inflation, exchange rates, and financial stability factors all point in the same policy direction, making the policy trade-offs faced by the Bank of Korea easier than usual.
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