South Korea Interest Rate

The benchmark interest rate in South Korea was last recorded at 2.50 percent. Interest Rate in South Korea averaged 3.68 Percent from 1999 until 2014, reaching an all time high of 5.25 Percent in October of 2000 and a record low of 2.00 Percent in February of 2009. Interest Rate in South Korea is reported by the The Bank of Korea.

   
 
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South Korea Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 5.25 2.00 1999 - 2014 Percent Monthly
In South Korea the interest rates decisions are taken by the Bank of Korea’s (BOK) Monetary Policy Committee. The official interest rate is the Bank of Korea Base Rate which was changed from overnight call rate on March 2008. This page provides - South Korea Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.


Bank of Korea Holds Base Rate at 2.5%


At its July 10th, 2014 meeting, South Korean Monetary Policy Committee decided to maintain the base rate on hold at 2.50 percent for the fourteenth straight month, as the country continued to enjoy buoyant exports while inflationary pressures appear to be somewhat weaker than expected. The Committee also lowered growth outlook for 2014 to become 3.8 percent from the initial target 4 percent.

Excerpt from the statement by the Bank of Korea:

The Committee forecasts that the global economy will sustain its modest recovery going forward, centering around advanced economies, but judges that the possibility exists of its being affected by the changes in global financial market conditions stemming from the shift in the US Federal Reserve’s monetary policy stance and by the weakening of economic growth in some emerging market countries.
 
In Korea, despite exports having maintained their buoyancy the Committee appraises economic growth to have slowed somewhat, as domestic demand has slackened due largely to the impacts of the Sewol ferry accident. On the employment front, the number of persons employed has shown an uptrend similar to its level of recent years, led by increases in the 50-and-above age group and in the service sector. The Committee expects that the negative output gap in the domestic economy will gradually narrow going forward, although its pace of narrowing will be moderate.

Consumer price inflation registered 1.7 percent in June, as in May, even despite a narrowing of the extent of decline in agricultural product prices as the decline in petroleum product prices accelerated. Core inflation excluding the prices of agricultural and petroleum products fell slightly, from 2.2 percent to 2.1 percent. The Committee forecasts that inflation will gradually rise, although inflationary pressures appear to be somewhat weaker than previously expected. Housing prices in the country excluding Seoul and its surrounding areas showed a slight upward movement, while leasehold-deposit prices both in Seoul and its surrounding areas and in the rest of the country continued their modest uptrends.
 
In the domestic financial markets, influenced by improvements in economic indicators in and the accommodative monetary policy stances of major countries, as well as by inflows of foreigners’ securities investment funds, stock prices have risen, long-term market interest rates have fallen, and the Korean won has appreciated.
 
Looking ahead, the Committee will conduct monetary policy so as to keep consumer price inflation within the inflation target range over a medium-term horizon while supporting the recovery of economic growth. In this process it will closely monitor external risk factors such as shifts in major countries’ monetary policies, as well as the possibility of a delay in the domestic demand recovery influenced for example by the Sewol ferry accident.




Bank of Korea l Rida l rida@tradingeconomics.com
7/10/2014 3:50:02 AM


Recent Releases

South Korea Monetary Policy Unchanged in June
At its June 12th, 2014 meeting, South Korean Monetary Policy Committee decided to hold the base rate on hold at 2.50 percent for the thirteenth straight month, as domestic demand has slackened somewhat due to the impact of the Seoul ferry accident and inflation is expected to remain low for the time being. Published on 2014-06-12

Bank of Korea Leaves Rates on Hold
At its May 9th meeting, the Monetary Policy Committee of the Bank of Korea left the benchmark interest rate steady at 2.5 percent for the 12th consecutive month. The Committee also said it will speed up spending, looking to stimulate growth hampered by a surge in the won and weaker consumption after a deadly ferry accident. Published on 2014-05-09


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-04-10 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-05-09 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-06-12 02:00 AM South Korea
Interest Rate Decision
Jun 2014 2.5% 2.5% 2.5% 2.5%
2014-07-10 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-08-14 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5%


Money Last Previous Highest Lowest Unit
Interest Rate 2.50 2.50 5.25 2.00 Percent [+]
Interbank Rate 2.48 2.49 25.34 1.76 Percent [+]
Money Supply M0 56941300.00 56020400.00 59421300.00 11200.00 KRW Million [+]
Money Supply M1 525898.50 520970.10 525898.50 260.40 KRW Billion [+]
Money Supply M2 1989680.00 1969662.10 1989680.00 590.60 KRW Billion [+]
Money Supply M3 2690401.10 2666972.80 2690401.10 57007.90 KRW Billion [+]
Foreign Exchange Reserves 366545.50 360912.70 366545.50 564.50 USD Million [+]
Loans to Private Sector 3556.00 1954.00 7695.00 -3462.00 KRW Billion [+]





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