SEOUL (Reuters) – South Korea’s central financial institution governor stated on Monday he would wish to debate with board members the influence of current authorities measures geared toward taming family debt, when requested about the potential for reducing rates of interest subsequent week.
“I have not yet been able to discuss with monetary policy board members the effects of government policies,” stated Rhee Chang-yong, in response to a reporter’s query about market expectations for a charge lower in October.
“When it comes to the matter, I think it is appropriate to discuss with the board and talk about it at the policy meeting, so I will not comment today,” Rhee stated, additionally declining to touch upon the potential for 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 assist home demand.
Final week, one board member stated authorities measures to curb family debt had been anticipated to regularly take impact, whereas one other member stated he wanted to see extra knowledge 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 choice with board members nonetheless involved about rising home costs and debt. It subsequent meets on Oct. 11.
