South Korea Interest Rate  1999-2017 | Data | Chart | Calendar | Forecast

The Bank of Korea left its base rate steady for the seventh straight month at record low of 1.25 percent at its January meeting, as expected. While saying the trend of recovery in domestic demand activities is expected to be limited, due to deterioration in economic sentiment for example; policymakers forecast a rate of GDP growth for this year will be in the mid- 2 percent range, weaker than previous projection of 2.8 percent. Looking ahead, the Board judges that the global economic recovery will be affected by factors such as the directions of the new US government's economic policies, the pace of monetary policy normalization by the US Federal Reserve, and the movements toward spreading trade protectionism. Interest Rate in South Korea averaged 3.38 percent from 1999 until 2017, reaching an all time high of 5.25 percent in October of 2000 and a record low of 1.25 percent in June of 2016.

South Korea Interest Rate
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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2016-11-11 01:00 AM Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2016-12-15 01:00 AM Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2017-01-13 01:00 AM Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2017-02-23 01:00 AM Interest Rate Decision 1.25%
2017-04-13 01:00 AM Interest Rate Decision
2017-05-25 01:00 AM Interest Rate Decision




Bank of Korea Holds Base Rate Steady; Cuts GDP Forecast


The Bank of Korea left its base rate steady for the seventh straight month at record low of 1.25 percent at its January meeting, as expected. While saying the trend of recovery in domestic demand activities is expected to be limited, due to deterioration in economic sentiment for example; policymakers forecast a rate of GDP growth for this year will be in the mid- 2 percent range, weaker than previous projection of 2.8 percent.

Excerpts from the statement by the Bank of Korea:

Based on currently available information the Board considers that the trend of global economic recovery has expanded somewhat, led by the US and some emerging market economies. Global financial market volatility has diminished, as the trends of rising government bond rates in major countries have subsided and stock prices have risen. Looking ahead the Board judges that the global economic recovery will be affected by factors such as the directions of the new US government's economic policies, the pace of monetary policy normalization by the US Federal Reserve, and the movements toward spreading trade protectionism.

In Korea, the slump in exports has eased but the Board judges the pace of domestic economic growth to have slowed somewhat, as the recovery in domestic demand activities has weakened. Employment conditions have been somewhat sluggish, with the number of persons employed having continued to decline in the manufacturing sector while its trend of increase in the service sector has slowed as well. The Board sees the domestic economy as likely to continue its trend of moderate growth going forward, and forecasts a rate of GDP growth for this year in the mid-2 percent range. The trend of recovery in domestic demand activities is expected to be limited, due to deteriorations in economic sentiment for example, but exports will likely improve thanks chiefly to the global economic recovery.

Consumer price inflation has risen to the mid-1 percent level, in line with the easing of downward price pressures on the supply side. Core inflation (excluding food & energy product prices from the CPI) has been in the mid- to upper-1 percent range, while the rate of inflation expected by the general public has remained at the mid-2 percent level. Looking ahead, the Board forecasts that consumer price inflation will gradually rise to near the 2 percent target level by around the middle of 2017, on the effects mainly of the increases in international oil prices, and that core inflation will maintain a level in the mid- to upper-1 percent range.

In the domestic financial markets, the volatilities of both stock prices and long-term market interest rates have subsided somewhat as the global financial market has stabilized. The Korean won-US dollar exchange rate has continued its uptrend seen since October of last year, in line with the strengthening of the US dollar globally. The upward trends of housing sales prices have slowed, centering around Seoul and its surrounding areas. Household lending has continued its substantial increase, but the amount of increase in that by banks has shown signs of lessening recently.

Looking ahead, the Board will conduct monetary policy so as to ensure that the recovery of economic growth continues and consumer price inflation approaches the target level over a medium-term horizon, while paying attention to financial stability. As the inflationary pressures on the demand side are not expected to be high, given the moderate pace of domestic economic growth, the Board will maintain its stance of monetary policy accommodation. In this process it will closely monitor the uncertainties in domestic and external conditions and their effects, the progress of monetary policy normalization by the US Federal Reserve, and the trend of increase in household debt.



Bank of Korea l Rida Husna | rida@tradingeconomics.com
1/13/2017 2:05:48 AM



South Korea Money Last Previous Highest Lowest Unit
Interest Rate 1.25 1.25 5.25 1.25 percent [+]
Interbank Rate 1.41 1.41 6.14 1.27 percent [+]
Money Supply M0 84944100.00 84053800.00 84944100.00 11200.00 KRW Million [+]
Money Supply M1 775103.60 767164.10 775103.60 260.40 KRW Billion [+]
Money Supply M2 2407526.10 2398058.20 2407526.10 590.60 KRW Billion [+]
Money Supply M3 3334033.20 3321180.40 3334033.20 57007.90 KRW Billion [+]
Foreign Exchange Reserves 371101.60 371985.30 377770.50 564.50 USD Million [+]
Loans to Private Sector 7448628.00 7598961.00 7598961.00 2603700.00 KRW Hundred Million [+]
Deposit Interest Rate 1.80 2.54 19.50 1.80 percent [+]
Private Debt To Gdp 255.78 253.50 255.78 237.39 percent [+]
Central Bank Balance Sheet 471459.90 467097.60 510090.10 310.30 KRW Billion [+]



South Korea Interest Rate Notes

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. South Korea Interest Rate - actual data, historical chart and calendar of releases - was last updated on January of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.25 1.25 5.25 1.25 1999 - 2017 percent Daily



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