26.June.2021: BOK warns of vulnerabilities, signaling rise in rates
K-News Bulletin
English - June 23, 2021 07:00 - 3 minutes - 2.18 MBDaily News News korea korea news korea joongang daily korea newspaper english newspaper south korea republic of korea 한국뉴스 헤드라인뉴스 headline news Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
The Bank of Korea (BOK) warned of growing vulnerability to the financial system from mounting household debt, probably signaling a raise in interest rates.
The central bank said in a regular financial stability report released Tuesday that should an unexpected economic crisis takes place, the country's gross domestic product (GDP) could contract by as much as 2.2 percent.
According to the report, the ratio of household and company debt to GDP hit a record 216.3 percent in the first quarter, up 15.9 percentage points year on year. Household and company debt grew by 9.4 percent on year in the first quarter, and the country's GDP grew at a much slower 1.3 percent.
Full Article: https://koreajoongangdaily.joins.com/2021/06/22/business/finance/bank-of-korea-interest-rate-financial-stability/20210622185213621.html