Rate cut unlikely to boost home prices, BOK official says
Published: 26 Mar. 2024, 18:37
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- JIN MIN-JI
- [email protected]
![Bank of Korea Monetary Policy Board member Suh Young-kyung speaks to press at the central bank's Seoul headquarters on Tuesday. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2024/03/26/5de610fa-3ddf-474e-ae52-3dbb8b202eca.jpg)
Bank of Korea Monetary Policy Board member Suh Young-kyung speaks to press at the central bank's Seoul headquarters on Tuesday. [YONHAP]
“It is true that a rate cut usually boosts home prices and household debt, but the chance is slim for now,” Suh Young-kyung told reporters.
The Korean central bank has maintained a restrictive stance, but a slight adjustment would not be enough to trigger a financial imbalance, she said.
“People's expectations play a key role in boosting household debt and housing prices, but the level of such expectations is not high or low,” the BOK's board member said, adding that growth in household debt slowed this year and home prices have stabilized.
The country's central bank froze its key rate at 3.5 percent for the ninth straight session last month amid slower-than-expected inflation moderation and high household debt.
The BOK delivered seven consecutive rate hikes from April 2022 to January 2023.
But the Korean central bank is widely expected to initiate monetary easing after June as inflation and private spending slow.
Yonhap
with the Korea JoongAng Daily
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