Moody’s(US:MCO) Xin Hua Cai Jing·2025-11-12 05:46Core Viewpoint - Moody's indicates that the Bank of Korea may delay its next interest rate cut to the first quarter of 2026 due to high household debt, rising housing prices, and resilient economic data [1][2]. Economic Indicators - Recent inflation rebound and better-than-expected GDP growth in the third quarter suggest that the Bank of Korea does not have an urgent need to further ease monetary policy [1]. - The unemployment rate in South Korea was 2.6% in October, showing stability in the labor market, while manufacturing employment has recently started to recover after four months of decline [1]. Monetary Policy Outlook - The last monetary policy meeting of the Bank of Korea for this year is scheduled for November 27, with market attention on whether another rate cut will occur [1]. - The current seven-day repurchase rate is maintained at 2.5%, with four rate cuts implemented since October 2024, but the easing was paused starting July 2025 [1]. Risks to Financial Stability - High levels of household debt and real estate prices remain significant risks to South Korea's financial stability, despite government measures to restrict housing credit [1]. - The policy stance remains cautious regarding further easing, as there is concern that it could exacerbate asset bubbles, particularly in the Greater Seoul area [1].