BOK needs to keep tabs on eurozone debt woes, U.S. economy: experts

SEOUL, July 19 (Yonhap) -- South Korea's central bank needs to closely monitor Europe's fiscal crisis and the health of the U.S. economy in managing its monetary policy, experts said Tuesday.
The global economy is facing a considerably high level of uncertainty, including contagion fears about the eurozone's debt crisis and a deadlock in talks over the issue of raising the U.S. debt ceiling.
According to the Bank of Korea (BOK), experts said in a monthly meeting with BOK Gov. Kim Choong-soo that the central bank should closely check Europe's fiscal problems and developments of U.S. jobs and housing markets in running its rate policy.
The BOK froze the key rate at 3.25 percent on Thursday after raising it in June, in the face of heightened external economic uncertainty.
Last week, the BOK revised up its inflation projection to 4 percent this year, while it cut its 2011 growth forecast to 4.3 percent.
Experts also said volatility of oil prices is likely to be limited as oil demand from emerging countries will remain solid while there is a chance that oil exporters like Saudi Arabia may increase their oil production.
sooyeon@yna.co.kr