Central Banks
Bank of Korea Expected to Pivot as Property Market Cools
- Rising mortgage debt and home prices delayed pivot thus far
- BOK increasingly concerned about slow private consumption
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The Bank of Korea is widely expected to cut its benchmark interest rate on signs housing markets are cooling and after inflation eased below its target, joining an increasing number of global peers in starting an easing cycle to safeguard economic momentum.
Twenty of 22 economists surveyed by Bloomberg expect South Korea’s central bank to cut the rate by a quarter-percentage-point to 3.25% when the board gathers Friday. The remaining two predicted authorities will extend a record-long holding pattern until they see clearer signs that property prices will ease enough to discourage households from ramping up debt.