Seoul: Bank of Korea Gov. Rhee Chang-yong stated that inflation targeting serves as an effective mechanism to resist political pressure, amidst calls from U.S. President Donald Trump for the Federal Reserve to lower the key lending rate to stimulate the economy.

According to Yonhap News Agency, Rhee expressed these views during a discussion with Kristalina Georgieva, the managing director of the International Monetary Fund, in Washington. He highlighted inflation targeting as a strategic approach where a central bank sets a specific numerical target for inflation and utilizes its available tools to reach this goal.

Rhee emphasized the value of inflation targeting for numerous countries, describing it as a beneficial framework that allows central banks to maintain focus despite external pressures. He noted that this strategy enables central banks to prioritize long-term goals over immediate political demands, providing a rationale for rejecting requests that fall outside their mandates.

Rhee's comments underscore the importance of maintaining monetary policy independence and the role of clear inflation targets in achieving economic stability.