South Korea Holds Interest Rates Steady Amid Property Market Concerns
The Bank of Korea maintained its benchmark interest rate at 2.5%, aligning with economist expectations. Policymakers remain cautious as household debt and housing inflation persist as critical challenges. The central bank has now held rates unchanged for three consecutive meetings following four cuts last year.
Seoul expanded property cooling measures to all 25 districts, including stricter loan limits. Governor Rhee Chang-yong emphasized the central bank's commitment to avoiding policies that could inflate real estate markets through excess liquidity. Analysts note housing prices remain resilient despite June's mortgage restrictions.
Bank of America highlighted Seoul's persistent housing inflation as a key policy concern. The monetary stance reflects balancing acts between economic growth and financial stability, with property market dynamics continuing to dictate policy trajectories.
