S.Korea c.bank warns of downside risks to growth, inflation
SEOUL, Oct 10 (Reuters) - South Korea's central bank on Thursday warned of downside risks to future growth and inflation as it lowered its headline gross domestic product growth and consumer prices forecasts for 2013 and 2014.
The Bank of Korea, in a statement, flagged uncertainties related to the U.S. Federal Reserve's tapering of its stimulus programme, the ongoing U.S. government budget and debt ceiling negotiations and instability in oil prices due to geopolitical risks in the Middle east as key headwinds for the economy.
The central bank also said a decline in international commodity prices due to a slowdown in the global economic recovery pose downside risks to its inflation projections.
Earlier on Thursday, BOK Governor Kim Choong-soo told reporters that the central bank cut its 2014 growth forecast to 3.8 percent from 4.0 percent. The central bank also cut its 2013 and 2014 inflation forecasts.
(Reporting by Se Young Lee; Editing by Shri Navaratnam)