유럽 증시, 부동산 상승에 힘입어 상승 
아시아 통화 강세, 엔화 8개월 만에 최고치 달러 대선 토론 후 하락 
아시아 증시 상승, 인플레이션 주목… 중국은 미국 불안으로 하락 
브라질 경제 성장 속 금리 인상 전망 11주 연속 동결 후 변화 
월가, 고용 지표로 미국 경제 성장 둔화 대비 
영국 임금 상승 둔화, 중앙은행 추가 금리 인하 가능성 
European Firms Skeptical of China’s Reform Promises as Investment Interest Declines 
인도의 중국 제조업 경쟁력 강화 시도, 현실의 벽에 부딪혀 
미 달러 약세 지속, 완전한 퇴장은 아냐 
이란 대통령, 중동 긴장 속 이라크 방문 
금 가격 소폭 하락, 인플레이션 시험 앞두고 사상 최고치 근접 
유가, 폭풍 피해와 수요 우려 속에서 안정세 
일본은행 정책위원, 인플레이션 목표 달성 시 금리 인상 준비 시사 
미국 재고 감소와 폭풍 영향으로 유가 회복 
미국 달러 약세지만 여전히 회복 가능성 있어: BCA 
South Korea’s household debt surged last quarter, reaching 1,896 trillion won, as mortgage loans soared by 5.9%. This increase is likely to deter the Bank of Korea from considering an interest rate cut when it meets on August 22, amid concerns over financial imbalances and rising home prices.
South Korea’s Accelerating Household Debt Likely to Keep Bank of Korea’s Rate Hike On Hold
The central bank is anticipated to refrain from indicating a near-term policy shift when authorities convene later this week, as the most recent dataset in a series of datasets shows that South Korea's household debt expanded at an accelerated pace last quarter.
The Bank of Korea announced on August 20 that total household credit increased by 1.9% from the previous year to 1,896 trillion won ($1.43 trillion) in April-June. Mortgage loans, the primary source of credit, increased by 5.9% in the prior year, reaching 1,093 trillion won.
In conjunction with an earlier BOK survey that indicated that consumers anticipate a further increase in the housing market's temperature, credit data on August 20 is expected to reinforce the consensus among economists that monetary authorities will maintain the benchmark interest rate at 3.5%, a level that is considered restrictive, when they meet on August 22.
Rising Household Debt and Seoul’s Housing Prices Fuel BOK’s Concerns Over Financial Imbalances
Last month, BOK Governor Rhee Chang-yong expressed apprehension regarding the rise in household debt, exacerbated by the continuous increase in home prices in Seoul, thereby increasing the likelihood of financial imbalances. Numerous individuals maintain most of their wealth in real estate, resulting in South Korea's household debt-to-economy ratio being among the highest in the world.
Although many economists anticipate the BOK reducing its rate in October, this prediction may be postponed if the housing market continues to exhibit warming symptoms beyond August. According to Yahoo Finance, this uncertainty and an export rally driven by artificial intelligence processors bolster policymakers' confidence in the economy's ability to continue operating despite restrictive policy settings.
On a separate note, the Financial Services Commission of South Korea announced on August 20 that the mortgage loan limit for residences in the greater Seoul area will be reduced beginning September 1. With its potential to discourage private lending, this action underscores the gravity of the situation and the caution that needs to be exercised in the future of private lending.
