SEOUL (Reuters) – South Korean President Yoon Suk Yeol mentioned on Thursday there was a must “manage” coverage rates of interest ought to expectations about decrease borrowing prices result in additional price will increase within the nation’s already sizzling housing market.

“It won’t matter if it (home buying) is real demand, but if speculative demand stemming from asset management purposes boost home prices we will manage policy interest rates. We need to make clear messages on that to calm the overheated sentiment,” Yoon mentioned throughout a televised information convention.

The Financial institution of Korea (BOK) mentioned at its Aug. 22 assembly that it was time to organize to chop rate of interest cuts after leaving the benchmark fee regular at a 15-year excessive of three.50% for the thirteenth straight assembly, as anticipated.

Yoon didn’t elaborate on whether or not he meant to handle coverage rates of interest set by the BOK or borrowing prices associated to coverage financing of native mortgage merchandise.

The BOK’s independence to set coverage rates of interest is assured by legislation, however governments have a observe document of pressuring the seven-memeber board to cooperate over coverage route.