South Korea’s central bank kept its benchmark interest rate unchanged at 2.5% for the fourth consecutive meeting Thursday, as policymakers continued to flag household debt as a key risk.
The decision was in line with expectations from economists polled by Reuters, and followed the introduction of tighter property measures in Seoul aimed at curbing borrowing.
On Oct. 15, South Korean media reported that stricter property rules, including tighter loan limits, will now apply across all 25 districts of Seoul, as well as 12 more areas in the surrounding Gyeonggi Province.
Previously, the tightened rules only applied to four of Seoul’s 25 districts.
Household debt remains a major concern for the Bank of Korea, which has been reluctant to cut rates for fear of fueling housing demand and pushing debt levels higher.
