Suh Young-Kyung Says Rate Cuts Are Unlikely To Stoke Home Prices In S. Korea

BoK's Suh Young-kyung told reporters that a potential rate cut would be unlikely to fuel home prices as "people's expectations play a key role in boosting household debt and housing prices, but the level of such expectations is not high or low" (as quoted by Yonhap News Agency).

• The official said that "as policy normalises, interest rates will more likely be lowered than not," adding that "policies are needed to avoid stimulating house prices and household debt."
• The BoK left interest rates unchanged last month but is expected to eventually pivot to cuts. Suh will step down in April alongside Cho Yoon-je, which means she may not be there to witness the inaugural cut of the cycle.