SEOUL (Reuters) – The governor of South Korea’s central bank said on Monday he would need to discuss with board members the impact of recent government measures aimed at curbing household debt, when asked about the possibility of cutting interest rates next week.
“I have not yet been able to discuss the results of the government’s policies with the members of the monetary policy board,” said Rhee Chang-yong, in response to a reporter’s question about the market’s expectations for a rate cut in October.
“When it comes to this issue, I think it should be discussed with the board and discussed at the policy meeting, so I will not comment today,” said Rhee and refused to comment on the possibility of going back. a reduction in the rate of return for the next month and the following month.
His comments came amid growing market expectations that the central bank will cut its policy rate from 3.50%, the highest since late 2008, at the next rate-setting meeting to support domestic demand.
Last week, one member of the board said that the government’s measures to curb household debt are expected to start working gradually, while another member said that they need to see more details even though the case for lowering the rates is increasing.
The Bank of Korea last month held interest rates steady at 3.50% in a unanimous decision with board members still concerned about rising mortgage rates and debt. It next meets on October 11.
