In a policy brief to lawmakers, South Korea’s central bank expressed concerns Thursday that uncertainty remains high over how fast inflation is easing. The Bank of Korea (BOK) said it expects domestic economic growth to decelerate, but it expects inflation to stay above the target level. As a result, it will maintain its restrictive monetary policy stance “for a considerable period of time” and determine whether to push for additional rate hikes down the road while prioritizing price stability.

The BOK left its policy interest rate unchanged at 3.5% last month. It was the first freeze after seven consecutive months of rate increases amid growing concerns over an economic slowdown. Inflation has shown signs of easing recently, with consumer prices rising 4.8% last month from a year earlier. But domestic consumer price inflation has slowed more slowly than in major advanced economies due to increases in utility bills, such as electricity and gas prices.