I think that it will be desirable to change this term as well when the time is opportune. 17  Of course, as inflation has remained low recently, issues are being raised as the effectiveness of BOK’s inflation targeting. This comes from concerns about deflation.
As I explained in the press conference right after the March MPC meeting, however, it is not practical to worry about deflation, considering that international commodity prices including those of oil and grains are low, and that even though inflation is low it is not a broad-based phenomenon (core inflation is at over the mid-1% range), and that our economic actors’ inflation expectations have been well anchored at around 2.9% for a long time.