Bank of Korea(BOK) Gov. Rhee Chang-yong says the central bank will decide its key interest rate after carefully monitoring prices and economic and financial conditions in light of the persistent domestic and global uncertainties. 

The BOK chief made the remarks Tuesday in a briefing on the BOK’s operations before the parliamentary finance committee. 

Rhee assessed that the economy, sluggish at the beginning of the year, rebounded in the second quarter due to improvements in business sentiment, predicting that the recovery will continue into the second half of the year driven by supplementary budget spending.

But the BOK chief said significant uncertainties remain regarding the growth trajectory, particularly in relation to developments in U.S. trade negotiations with major economies such as China, and the pace of recovery in domestic demand.

He added that prices of agricultural, livestock and fisheries products may fluctuate due to adverse weather, but said overall inflation can be expected to remain stable around two percent, supported by steady global oil prices and low demand pressures.