SEOUL, South Korea – South Korea's central bank has kept its 2014 growth forecast for Asia's fourth-largest economy at 3.8 percent.
Kim Choong-soo, the Bank of Korea governor, says Thursday that South Korea's economy will expand at the fastest clip in four years as a global recovery continues.
The central banker also says the U.S. Federal Reserve's decision to reduce stimulus is favorable for South Korea because it shows the U.S. economy is recovering.
His remarks come after the central bank held its key interest rate steady for an eighth month.
The unanimous decision comes amid concerns that Japan's weak yen and the rise of the Korean won could undermine growth.
Kim said the negative impact from the yen's fall is limited to certain industries such as autos, steels and machineries.