The Bank of Korea (BOK) said Monday that its three-month policy rate outlook has helped shape market expectations and reduce volatility, as the central bank considers extending its forecast horizon to improve policy predictability. The BOK made the assessment during a monetary policy conference held in Seoul, noting that it is reviewing ways to extend its forward guidance outlook to enhance the predictability of policy rate decisions. "The three-month interest rate outlook has had a positive impact on forming market expectations for the policy rate and easing volatility in market interest rates," Kim Byung-kuk, head of the policy coordination team at the BOK's Monetary Policy Department, said. "But the forecast horizon is somewhat shorter than those used by major economies or dot-plot systems. Since July last year, the BOK has been conducting simulations of various approaches, including presenting multiple rate projections within a one-year horizon," he added. Currently, BOK Gov. Rhee Chang-yong discloses the distribution of Monetary Policy Board members' views on the policy rate outlook