South Korea central bank ups inflation forecast, cuts growth view

SEOUL: South Korea's central bank on Friday slightly raised its inflation forecast for this year while cutting its economic growth projection, a day after holding interest rates steady in the face of a softening global economy.

The Bank of Korea now sees 2011 consumer inflation at 4.0 percent, compared with its April forecast of 3.9 percent and an actual 2.9 percent set in 2010, it said in a statement.

Asia's fourth-largest economy is now projected to grow by a real 4.3 percent this year after a 6.2 percent rise in 2010, compared with the central bank's previous projection for 4.5 percent growth.

It estimated gross domestic product during the second quarter of this year expanded by a seasonally adjusted 0.9 percent from the preceding quarter, when it expanded by 1.3 percent.

Copyright Reuters, 2011