The government will continue to keep a close eye on household loans after Thursday’s interest rate cut and will monitor the impact on the housing market in the capital region.

The decision was made during a meeting attended by acting Finance Minister Kim Beom-seok, Bank of Korea(BOK) Gov. Rhee Chang-yong, Financial Services Commission Chairman Kim Byoung-hwan and Financial Supervisory Service Gov. Lee Bok-hyun.

Earlier, the BOK lowered its benchmark rate by a quarter percentage point to two-point-five percent amid sluggish domestic demand and uncertainties stemming from Washington’s tariff policy.

While those at the meeting found the domestic financial and foreign exchange markets relatively stable, they agreed to continually monitor external conditions as U.S. President Donald Trump’s tariffs currently occupy a legal limbo, with conflicting rulings from a trade court and a federal appeals court this week. 

The participants also concluded that corporate bond issuance remains smooth, due largely to steady demand for investment, and credit spreads are stable.