Property: Korea increased home loan rate
Korea is gambling on keeping its banks afloat with a strategy that flies in the face of the USA's
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Korea's had enough of its banks collapsing: like many Asian countries, it's done that and it doesn't want to go through it again.
And so it has announced a bold strategy: it might force down property prices, and it might force sales to slow but increasing interest rates will, it hopes, discourage irresponsible borrowing, pull down inflation risk and protect banks by increasing their revenues.
So the Korean home loan rate has increased to 10%
That's high by the standards of almost everywhere, but the Central Bank concludes that if low rates have caused the US financial sector to implode, then high rates will prevent a similar situation arising.
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