South Korea’s property market has not fully stabilised as the pace of price growth in pockets of Seoul remains high, the central bank chief said on Tuesday, ahead of next week’s policy review where policies are expected to be held steady.
“In some areas of Seoul, housing prices are still rising at a high rate, so we need to watch whether the trend will stabilise,” Bank of Korea Governor Rhee Chang-yong said in a speech prepared for a parliament session.
The central bank next meets on August 28 after it kept its benchmark interest rate unchanged at 2.50% in July, citing “significant” economic uncertainty from U.S. tariffs.
Rhee on Tuesday said headline inflation will continue to be around 2% in the second half while economic recovery will gain traction in coming months thanks to the supplementary spending approved by the parliament recently.