BOK governor to discuss household debt

South Korea’s central bank governor, Rhee Chang-yong, stated that he would need to consult with board members regarding the impact of recent government measures on household debt before considering a potential interest rate reduction next week.

He mentioned that he has not had the opportunity to discuss the effects of government policies with the monetary policy board members yet, in response to inquiries about market predictions for a rate cut in October.

Rhee declined to comment on potential rate cuts next month and the month after, stating that he will discuss the matter with the board at the policy meeting.

His comments reflect market expectations of a policy rate reduction from the current 3.50 per cent to boost domestic demand.

Attribution: Reuters

Subediting: M. S. Salama