Stabilizing prices and slowing housing prices...Interest rate cut 'weight'

[Anchor]
The Bank of Korea's Monetary Policy Committee will decide the base rate the day after tomorrow (11th).

Prices are stabilizing at around 1%, and house prices are slowing down, putting weight on interest rate cuts.

I'm reporter Lee Hyungwon.

[Reporter]
As the U.S. cut interest rates by 0.5%p last month, expectations are growing that it's our turn now.

In particular, consumer price growth was around 1%, the lowest level in three years and seven months.

As it fell below the Bank of Korea's 2% target, the reason for the rate cut grew.

[Lee Chang-yong / Governor of the Bank of Korea (August): When looking at the level of prices alone, conditions for a rate cut have been created.... (But) there are a lot of red flags coming in now due to real estate prices and the resulting increase in household debt....]

Household debt and housing prices, which have been cited as the last variables, are also calming.

The increase in household loans by the five major banks last month was only around 5 trillion won.

It is down more than 4 trillion won from August, which was the largest ever.

As the rise in apartment prices in Seoul, which can measure the heat of the real estate market, continues to decrease, the surge in housing prices seems to have slowed down.

This is why it is weighing on the fact that the Monetary Policy Committee will cut interest rates.

[Jo Young-moo / Researcher at LG Management Research Institute: With household debt and housing price movements becoming more important in the Bank of Korea's interest rate policy than prices (related indicators show a slowdown), the possibility of starting a rate cut in October is growing.]

However, the prevailing analysis is that it is difficult to say that the increase in household debt has declined in a trend.

[Lee Jung-hwan / Professor of Economics and Finance at Hanyang University: It is too early to confirm that demand in the real estate market is going down, so wouldn't it be difficult to cut interest rates further within this year?].]

As the economy is not bad enough to lower interest rates one after another, this year's cut is expected to be only 0.25%p.

I'm Lee Hyungwon of YTN.


Video editing:Jung Kook-yoon

Graphics: This is