Moody's Analytics expects BOK to hold policy rate steadyStaff Writer | October 14, 2017
South Korea's central bank is likely to hold its key rate steady this month as soft domestic demand could keep monetary policy accommodative in the near term, Moody's Analytics said.
Asia The Bank of Korea
Still, Moody's Analytics said in a report that the South Korean government's stimulus measures such as the proposed 7.1 percent on-year spending increase in the 2018 budget and concerns about record high household debt "could prompt a faster than expected rate hike cycle next year."
South Korea's overall household debt came to 1,388.3 trillion won ($1.22 trillion) as of end-June, up 10.4 percent from a year earlier, according to data compiled by the BOK.
In June, BOK Gov. Lee Ju-yeol said the central bank may take a monetary tightening approach if the economy shows signs of a robust recovery. ■