Anchor: The Bank of Korea kept its benchmark interest rate steady at a record low one-and-a-quarter percent on Friday. The central bank was constrained by rapidly increasing household debt and a potential rate hike in the United States.
Our Kim In-kyung has more.
 
Report: The Bank of Korea(BOK) on Friday left its benchmark interest rate unchanged at one-point-25 percent for September.
 
The monetary policy board has kept the key rate steady for three consecutive months since lowering it to the record-low figure in June. 
 
The central bank was limited in its movement due to concerns about rapidly increasing household debt at home and a potential rate hike in the United States. 
 
Household loans by South Korean banks increased six-point-three trillion won in July and eight-point-seven trillion won in August, mainly due to mortgage loans notwithstanding the low season for the property market in the summer.
 
Meanwhile, U.S. Federal Reserve Chairwoman Janet Yellen has strongly indicated that the Fed could raise interest rates this year. A rate hike in the U.S. makes it difficult for the BOK to go in the opposite direction due to a possible outflow of foreign investment funds. 
 
Most analysts agree that the Fed is likely to push up rates at least once before the year is over. The European Central Bank kept its stimulus program unchanged on Thursday while the Bank of Japan is expected to stay pat on September 21st due to a possible rate hike by the Fed.
 
Following the rate announcement, the BOK said in a statement that exports rose slightly due to temporary factors and domestic consumption continued to improve.
 
Regarding economic prospects for the coming months, it maintained last month's statement that the domestic economy is expected to sustain gradual growth helped by expansionary macroeconomic policies, but there's high uncertainty due to internal and external factors.
 
It noted that the global economy is expected to continue recovering gradually while being affected by changes in the monetary policies of major countries, including the United States, uncertainties regarding Brexit and economic circumstances in emerging markets.
Kim In-kyung, KBS World Radio News.