The Bank of Korea(BOK) explained that it attempted to suppress inflation by raising the interest rate to a “restrictive” level and its monetary tightening policy will continue to further stabilize prices.

The central bank outlined its policy direction in a briefing to lawmakers on Tuesday, projecting that while inflation will gradually ease, it will remain above the target of two percent this year.

Decisions on additional rate hikes, the bank said, will be made by closely monitoring a number of factors, including the effects of previous hikes, the downward pace of inflation, the downside risks to economic growth, risks to stability and monetary policy changes in other major economies.

The BOK maintained the forecast that domestic growth will slow on-year in the short term due to weak consumption and sluggish exports, but conditions will improve toward the latter part of the year with the reopening of China and a rebound in information technology sectors.

The forecast for the real estate market also remains bleak due to the high cost of borrowing and a decline in home transaction prices, but the bank expressed optimism that government policies will help slow the plunge in housing prices.