SEOUL- South Korea’s central bank governor said on Monday he would need to discuss with board members the impact of recent government measures aimed at taming household debt, when asked about the possibility of lowering interest rates next week.

“I have not yet been able to discuss with monetary policy board members the effects of government policies,” said Rhee Chang-yong, in response to a reporter’s question about market expectations for a rate cut in October.

“When it comes to the matter, I think it is appropriate to discuss with the board and talk about it at the policy meeting, so I will not comment today,” Rhee said, also declining to comment on the possibility of back-to-back rate cuts next month and the month after.

His remarks came amid growing market expectations that the central bank will lower its policy rate from 3.50 percent, the highest since late 2008, at the upcoming rate-setting meeting to support domestic demand.

Last week, one board member said government measures to curb household debt were expected to gradually take effect, while another member said he needed to see more data although the case for rate cuts was growing.

The Bank of Korea last month held interest rates steady at 3.50 percent in a unanimous decision with board members still concerned about rising house prices and debt. It next meets on Oct. 11.

South Korea’s economy unexpectedly shrank in the second quarter, clocking the sharpest contraction since 2022 as slumping consumer spending undermined an export boom, reinforcing expectations that an interest rate cut could be imminent.