Central Banks
Bank of Korea Eyes First Policy Pivot in Years on Signs of Cooling Property
- Almost all economists expect board to cut rate on Friday
- South Koreans’ zeal for real estate may limit scope ahead
Several months ago, government officials stepped in with measures to rein in housing prices, pledging a greater supply of homes and tightening lending regulations.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
The Bank of Korea is expected this week to conduct a long-awaited policy pivot, joining global peers in embarking on an easing cycle after the housing market showed signs of cooling and inflation eased below its target.
Twenty of 22 economists surveyed by Bloomberg forecast the central bank will cut its benchmark interest rate by a quarter-percentage-point to 3.25% when the board sets policy on Friday. It would be the first shift of policy course since the BOK raised its rate from a record low 0.5% in August 2021 to exit from pandemic-era stimulus.