Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = Bank of Korea (BOK) Governor Lee Chang-yong emphasized that the recent rise in credit spreads is an unavoidable cost to ensure financial stability. Speaking at a press conference on November 28 following the Monetary Policy Committee (MPC) meeting, Lee predicted that household debt would begin to decline by December, with market credit spreads likely to decrease early next year.

The BOK's MPC announced its decision to cut the benchmark interest rate from 3.25% to 3.5%, marking the second consecutive rate reduction following October’s rate cut.

Governor Lee highlighted the government’s macroeconomic stability measures implemented since August, saying,"After freezing the base rate in August, we believe the government's policies effectively halted the rapid surge in household debt. That pause allowed us to stabilize household debt significantly and curb the momentum driving real estate price increases."

Addressing recent trends, Lee noted,"Household debt slightly increased this month due to seasonal factors related to the moving period. However, by December, we expect to see a downward trend. Over the next few months, government policies aimed at macroeconomic stability are likely to work effectively, leading to further stabilization of household debt."

Looking ahead, the governor stressed,"We will assess whether household debt stabilization continues following this rate reduction and closely monitor the impact of additional rate cuts on household debt and real estate prices before making further adjustments to monetary policy."

By Eun-young Huh(eunyoung114@nspna.com) and Soo-in Kang(sink606@nspna.com)

ⓒNSP News Agency·NSP TV. All rights reserved. Prohibits using to train AI models.