SEOUL, Jan. 18 (Xinhua) -- South Korea's central bank on Thursday revised up its 2018 growth outlook for the South Korean economy to 3 percent, predicting the growth rate above 3 percent for two straight years.
The Bank of Korea (BOK) upgraded its 2018 growth forecast to 3 percent from 2.9 percent estimated three months earlier.
It was in line with the finance ministry's revised forecast of 3 percent, which is an identical figure estimated by the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD).
The central bank set its 2017 growth outlook at 3.1 percent, predicting South Korea's economic growth rate staying above 3 percent for two years in a row.
The BOK announced the revised figures after freezing its benchmark interest rate at 1.5 percent during this year's first rate-setting meeting.
The bank revised down its outlook for the 2018 consumer price inflation by 0.1 percentage point to 1.7 percent. It was below the BOK's inflation target of 2 percent.
The South Korean currency appreciated to the U.S. dollar, reflecting the solid fundamental of the economy. It pulled down prices for imported goods, putting downside pressure on the headline inflation.
The BOK, however, expected the demand-side inflationary pressure to get strong later this year thanks to economic recovery. A hike in minimum wage would raise the inflation this year, while lower crude oil prices would drag down the inflation.
Outlook for core inflation, which excludes volatile food and energy costs, was expected to rise from 1.8 percent this year to 2.0 percent next year.
The BOK said the South Korean economy was forecast to maintain its recovery momentum thanks to brisk exports, caused by the global economic recovery, and an expanded private consumption.
Private consumption was forecast to grow 2.7 percent this year due to the government's measures to raise minimum wage and create decent jobs.
