South Korea Interest Rate

The benchmark interest rate in South Korea was last recorded at 2.50 percent. Interest Rate in South Korea is reported by the The Bank of Korea. Interest Rate in South Korea averaged 3.70 Percent from 1999 until 2014, reaching an all time high of 5.25 Percent in October of 2000 and a record low of 2 Percent in February of 2009. 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. 2014-04-17

Actual Previous Highest Lowest Forecast Dates Unit Frequency
2.50 2.50 5.25 2.00 2.50 | 2014/05 1999 - 2014 Percent Monthly

TO

South Korea Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2014-01-09 01:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-02-13 01:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-03-13 01:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
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%
2014-06-12 02:00 AM South Korea
Interest Rate Decision
2.5%
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Money Last Previous Highest Lowest Forecast Unit
Interest Rate 2.50 2014-04-10 2.50 5.25 2.00 2.50 2014-05-31 Percent [+]
Foreign Exchange Reserves 354341.30 2014-03-31 351791.80 354341.30 564.50 355433.15 2014-04-30 USD Million [+]
Interbank Rate 2.48 2014-03-15 2.49 25.34 1.76 2.50 2014-04-30 Percent [+]
Loans to Private Sector 920.00 2014-03-15 1851.00 7695.00 -3462.00 2082.63 2014-04-30 KRW Billion [+]
Money Supply M0 55394300.00 2014-02-28 59421300.00 59421300.00 11200.00 57365189.21 2014-03-31 KRW Million [+]
Money Supply M1 519154.10 2014-02-28 514601.30 519154.10 260.40 520126.51 2014-03-31 KRW Billion [+]
Money Supply M2 1964261.00 2014-02-28 1947925.40 1964261.00 590.60 1971715.91 2014-03-31 KRW Billion [+]
Money Supply M3 2658305.00 2014-02-28 2643991.70 2658305.00 57007.90 2671824.95 2014-03-31 KRW Billion [+]
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Bank of Korea Leaves Monetary Policy Unchanged

At its April 10th, 2014 meeting, South Korea's central bank held the benchmark interest rate unchanged at 2.5 percent, as widely expected. Under new Governor Lee Ju-yeol, the Bank of Korea cited signs of recovery at home and abroad and uncertainty about the US Federal Reserve's stimulus.

Excerpt from the statement by the Bank of Korea:
 
In Korea indicators related to domestic demand have slumped temporarily, but as exports have shown buoyancy the Committee appraises the economic recovery to have continued in line with the trend of growth.
The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow.

The Committee forecasts that inflation will gradually rise, although it will remain low for the time being due largely to a bountiful agricultural harvest. Regarding the housing market, the uptrends of sales and leasehold deposit prices in both Seoul and its surrounding areas and in the rest of the country increased slightly, due in part to the influence of the spring moving season.

Looking ahead, while paying close attention to developments in and the influences of external risk factors such as shifts in major countries’ monetary policies, the weakening of economic growth trends in some emerging market countries and geopolitical risks in Eastern Europe, 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 continued recovery of economic growth.

The Bank of Korea | Joana Taborda | joana.taborda@tradingeconomics.com
4/10/2014 9:52:48 AM

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Bank of Korea Holds Rates
At its March 13th, 2014 meeting, South Korea’s central bank decided to hold the base rate unchanged at 2.5 percent, citing mixed signs of a global recovery. Published on 2014-03-13

South Korea Keeps Rates Unchanged in February
At its February 13th, 2014 meeting, South Korea’s central bank decided to leave the base rate unchanged at 2.5 percent, on mixed prospects of economic recovery. Published on 2014-02-13


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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