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The Bank of Korea (BOK) today held its Monetary Policy Committee to decide on the adjustment of the current interest rate to 1.5%.
It is the last meeting of the year to determine the benchmark interest rate.
Before the BoK's decision on the financial markets, the BOK plans to raise interest rates one year after last November.
The Korean Financial Investment Association surveyed 200 creditors, with 79 percent of respondents expecting higher rates.
Household debt, which is growing faster than income and interest rates, is one of the factors driving interest rates up.
While the United States has quickly raised its interest rates, benchmark interest rates in Korea and the United States have already reversed in March of this year and the rate differential has risen. interest has now reached 0.75% p.
The United States is planning a rate hike next month. The US and US interest rate will therefore exceed 1% p in the near future.
It has also been argued that household debt is growing faster than income, with liquidity dispersing at low interest rates in the market, and that it is also seen as a cause of soaring consumer prices. real estate and that money had to be increased by raising interest rates.
However, there is no doubt that the current economic situation is not appropriate for raising interest rates.
The BOK, which had initially forecast a 3% growth rate, was slowing this year by lowering its economic growth forecast to 2.7% and household debt has already exceeded W 1500 trillion. That's because you can be shocked.
So even though the BOK raised the interest rate today, there is also concern that further increases may not be easy next year.
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