The Bank of Korea may slash its key rate before rising home prices show signs of easing markedly, although the timing of its monetary easing is still uncertain, its board member said Wednesday. Last month, the BOK kept interest rates unchanged at 3.5 percent, the highest level in about 16 years, for the 13th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023. Recently, inflation has markedly moderated, leaving room for the BOK to reduce the rate, but rising household debts have emerged as a drag on its policy pivot. "We don't have a time (for a rate cut) until momentum driving household debts markedly slows down," Shin Seong-hwan said in a press conference. "I don't think our economic conditions are good." The BOK board member said it is still hard to say when the potential rate cut is timely. "Still, there are concerns that house prices might rise again, and I am not sure about what to do in October or November," he said. Source: Yonhap News Agency
BOK may cut rate before home prices stabilize: BOK board member
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