Bank of Korea(BOK) Deputy Gov. Yoo Sang-dai has revealed that surging housing prices in parts of Seoul are becoming an increasingly important factor in the central bank’s rate-setting decisions.

At a press briefing Tuesday, Yoo warned that rising home prices could accelerate the growth of household debt, prompting closer scrutiny by the BOK’s Monetary Policy Board.

While current inflation and economic trends point toward a potential rate-cutting cycle, Yoo said concerns over household debt and financial market stability, including the foreign exchange market, are influencing the timing and pace of any interest rate adjustments.

The BOK is set to decide on a potential rate change at its next Monetary Policy Board meeting on July 10.

Yoo also expressed cautious support for a South Korean won-pegged stablecoin, suggesting that its initial issuance be limited to highly regulated banks.