OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMOIL PRICES WITNESS DISRUPTIONS AS MIDDLE-EAST CONFLICTS ESCALATESouth Korea's central bank governor, Rhee Chang-yong, stated on Monday that he needs to discuss the effects of recent government policies aimed at curbing household debt with board members before deciding on a potential interest rate cut. This came in response to questions about market expectations for a rate reduction during the upcoming policy meeting on October 11.Rhee emphasized that it would be inappropriate to comment on any rate changes before having these discussions, particularly concerning the possibility of consecutive rate cuts over the next two months.His comments come as expectations grow for the central bank to lower its policy rate from the current 3.50 percent, the highest level since 2008, in order to stimulate domestic demand. However, the Bank of Korea has maintained caution, holding rates steady at 3.50 percent last month due to concerns about rising house prices and household debt.The central bank's next policy meeting is scheduled for October 11, when it will consider these factors alongside the impact of government debt-curbing measures. Oil prices rose slightly on Monday amid growing concerns over potential supply disruptions in the Middle East following intensified attacks by Israel on Iranian-backed forces. Brent crude futures for November saw a modest increase of 16 cents (0.22 percent) to $72.14 per barrel, while the more active December contract gained 10 cents (0.14 percent) to $71.64 per barrel. U.S. West Texas Intermediate (WTI) crude also edged up by 8 cents (0.12 percent) to $68.26 per barrel.Despite recent declines last week, where Brent dropped by 3 percent and WTI by 5 percent, Monday's gains were driven by escalating tensions in the Middle East. Concerns have risen over the possibility of Iran, a major OPEC producer, being drawn further into the conflict. ANZ Research noted that these tensions increase the risk of potential supply disruptions from Iran.Later in the day, markets are expected to focus on remarks from Federal Reserve Chair Jerome Powell, which could provide insights into the central bank's stance on monetary policy easing. However, downward pressure on oil prices remains as OPEC+ plans to raise output by 180,000 barrels per day in December, along with the resumption of oil exports from Libya. KOREAN CENTRAL BANK TO ROLL OUT POLICIES TO CURB RISING HOUSE PRICES
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