Korean Central bank to Roll Out Policies to Curb Rising House Prices

South 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%, 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% 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.