This anniversary is also a good time to consider the challenges that the Bank of Korea and other central banks will face in the future. In the medium term, like the Federal Reserve and many other central banks, the Bank of Korea will have to manage its exit from accommodative policies.
As is typically the case in the early stages of an economic recovery, the Bank will have to weigh the risks of a premature exit against those of leaving expansionary policies in place for too long. Because economic conditions vary, the appropriate timing of the exit is likely to differ across countries.