Korea Bank maintains fixed rates because it establishes measures to cool the housing market in Seoul

The Central Bank of South Korea retained 2.5 % on Thursday, establishing the impact of modern measures aimed at cooling the housing market in Seoul.

Housing prices in Seoul increased more than 19 % in June on an annual basis, according to Coldman Sachs, which prompted the financial authorities to Step with measures To quickly process dilated home loans.

Korea Bank referred to “a great acceleration in housing prices in Seoul and its surrounding areas, (as well as) family debts.”

The Central Bank reduced prices at its last meeting in May at a time when the country was in the midst of political turmoil, while also facing a severe tariff on car and steel exports from the United States

While the South Korean economy contracted 0.2 % in the quarter in the quarter in the first three months of this year, amid the growth of the export and activity of the weak construction, the bank chose to maintain fixed prices to address the high temperature in the housing market in the capital.

Bok said it is important to assess the impact of macro policies, given the high risk associated with the housing market in Seoul and the height of family debts, while “remains careful about the possibility of increasing fluctuations in the foreign exchange market.”

Goldman said in a memorandum last week that the recent housing market developments increased Bok’s concerns about financial stability, adding that the growth of household loans rose to 6 trillion Won ($ 4.27 billion) in May – the fastest pace since last October – and it reached 7 trillion Won in June.