Lee Chang-yong points out that interest rate cuts are not effective, saying, "It's hard to deny."

Lee Chang-yong, governor of the Bank of Korea, said it was hard to deny the BOK's criticism that it had no effect on changing monetary policy despite the Monetary Policy Board's key rate cut.

Governor Lee responded to Democratic Party lawmaker Ahn Do-gul's comments during the National Assembly's Strategy and Finance Committee's parliamentary audit of the Bank of Korea.

Ahn argued that the delay in the second stage of stress DSR and the expansion of policy loans, such as newborn loans, made house prices and household loans unstable, which delayed the base rate cut, eliminating the practical effect of the monetary policy shift.

Lee said market interest rates are rising as household loans are tightened and banks think a rate hike is an inevitable direction in the process of reducing real estate loans.