"Rate cuts" are limited to stimulating housing prices... Loan regulation is key [Anchor Report]

Last month, the increase in household loans decreased slightly to 5 trillion won.

The amount is not small, but it is down nearly 40% from August.

The Bank of Korea cited August's advance demand, which appeared as a loan regulation policy, and the impact of the banking sector's management of household loans, for the decrease in the size of household loan growth.

By type of loan, the increase in mortgage loans also decreased by 2 trillion won from August.

Other loans, including credit loans, also declined in a month.

However, the financial authorities said that even if household debt growth slowed, there was no change in their position to manage it with alarm as loan levels remained.

As the Bank of Korea lowered its benchmark interest rate, there are predictions that housing prices, which have been slowing for a while, will jump again.

However, with the government having strong loan regulations, the diagnosis is likely to be that the impact of this rate cut on housing prices will be very limited.