The head of the Bank of Korea(BOK) says a key interest rate hike could be seriously considered if there is no slowdown in rising household debt despite any tightening of real estate regulations.

Governor Rhee Chang-yong made the remark on Monday during the inspection of the National Assembly’s Strategy and Finance Committee with regard to the latest surge in household debt.

On the view that freezing the key rate could be a cause of the increase in household debt, Rhee said such debt could be contained if the rate is hiked but was quick to stress that the bank opted to freeze it after taking into consideration the impact a hike could have on the financial market’s stability and inflation.

Citing a slight fall in the nation’s household debt in September after surging for some two months, Rhee said there is a need to wait a few more months to determine whether the rise will slow down given the time it takes for government policies to take effect.

On the reason the government eased real estate regulations late last year and early this year, the central banker said the move was aimed at addressing uncertainties in the financial market and real estate market.