SEOUL (Reuters) – South Korea’s central financial institution governor mentioned on Monday he would want to debate with board members the affect of current authorities measures aimed toward taming family debt, when requested about the opportunity of reducing rates of interest subsequent week.
“I’ve not but been capable of focus on with financial coverage board members the consequences of presidency insurance policies,” mentioned Rhee Chang-yong, in response to a reporter’s query about market expectations for a charge reduce in October.
“Relating to the matter, I believe it’s acceptable to debate with the board and speak about it on the coverage assembly, so I cannot remark at this time,” Rhee mentioned, additionally declining to touch upon the opportunity of back-to-back charge cuts subsequent month and the month after.
His remarks got here amid rising market expectations that the central financial institution will decrease its coverage charge from 3.50%, the very best since late 2008, on the upcoming rate-setting assembly to help home demand.
Final week, one board member mentioned authorities measures to curb family debt have been anticipated to step by step take impact, whereas one other member mentioned he wanted to see extra information though the case for charge cuts was rising.
The Financial institution of Korea final month held rates of interest regular at 3.50% in a unanimous resolution with board members nonetheless involved about rising home costs and debt. It subsequent meets on Oct. 11.
