Seoul: The central bank will not fuel the real estate market by boosting liquidity, Bank of Korea (BOK) Gov. Rhee Chang-yong said Monday, possibly suggesting a need to keep the key rate frozen for the immediate future. Rhee made the remarks during a parliamentary audit of the central bank, ahead of the central bank's rate-setting meeting set to be held Thursday.

According to Yonhap News Agency, Rhee emphasized that real estate prices are influenced by various societal factors, including income levels, population concentration in the capital region, and household debt. He noted that while some change is necessary, there is no solution that will satisfy everyone. From the BOK's perspective, the bank does not intend to increase liquidity in a way that would stimulate the real estate market.

The governor also addressed education-related issues as a significant factor behind the high demand for homes in Seoul. He pointed out that the housing supply in Seoul cannot keep pace with the population inflow, especially if education-related challenges, such as the college entrance system, remain unaddressed.

Despite government efforts to tighten lending rules and implement measures to boost housing supply, the property market continues to experience instability, with apartment prices in parts of Seoul still rising. To maintain financial stability under these conditions, the BOK kept its policy rate unchanged for a second consecutive time in August, despite calls to bolster growth momentum.

Analysts predict that the central bank will likely keep the rate frozen again at its upcoming meeting this week.