Central Banks
Ex-Bank of Korea Member Plays Down Chance of October Rate Cut
- Rising home prices may deter central bank from policy pivot
- Defending won at 1,390 per dollar would be crucial, Lee says
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The Bank of Korea may wait until after October to cut its key interest rate as housing inflation in Seoul threatens to ripple across the country, a former board member said, suggesting economists may need to keep pushing back their timelines for a policy pivot.
“Even an October cut will be difficult,” said Lee Seung-heon, former senior deputy governor at the BOK. “Home prices should now be considered as the most important factor.”