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South Korea To Cap Household Debt Rise

SOUTH KOREA

Headlines crossing the wires that South Korea plans to cap the rise in household debt to 6% in 2021 and 2022. Household debt rose 7.9% in 2020 and hit a record last quarter. Earlier in September the BoK said raising its policy interest rate should help slow the pace of household debt growth going forward, and reiterated that it will continue to tighten policy as inflationary pressures persist. The plans to cap household debt rises with fiscal policy could have implications for the BoK's rate hike path.

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