South Korea Interest Rate 1999-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in South Korea was last recorded at 2 percent. Interest Rate in South Korea averaged 3.65 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. 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
2.00 2.00 5.25 2.00 1999 - 2014 percent Daily
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. Content for - South Korea Interest Rate - was last refreshed on Saturday, November 29, 2014.


South Korea Monetary Policy Unchanged in November


South Korean Monetary Policy Committee left the base rate unchanged at 2 percent at its November 13th meeting, as it weighs the effects of last month's rate cut.

Excerpts from the statement by the Bank of Korea:

The Committee considers that  although the trend of economic recovery in the US has been sustained, the sluggishness of economic activities in the euro area has continued while trends of economic growth in emerging market countries have differed from country to country. The Committee forecasts that the global economy will sustain its modest recovery going forward, centering around the US, but judges that the possibility exists of its being affected by changes in the monetary policies of major countries, by the prolongation of economic sluggishness in the euro area, by the weakening of economic growth in some emerging market countries, and by geopolitical risks.
 
In Korea, the Committee judges that exports have sustained a favorable pattern, that indicators of domestic demand have been alternating between improvements and worsening, and that economic agents’ sentiments have been sluggish. On the employment front, the number of persons employed has expanded steadily, 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, albeit at a moderate pace.
 
Consumer price inflation rose from 1.1% the month before to 1.2% in October, due mainly to a narrowing of the extent of decline in agricultural product prices. Core inflation excluding agricultural and petroleum product prices fell to 1.8%, from 1.9% in September, owing primarily to slowdowns in the rates of industrial product price increase. The Committee forecasts that, after remaining low for the time being, inflation will gradually rise next year. In the housing market, sales and leasehold deposit prices in both Seoul and its surrounding areas and in the rest of the country continued their uptrends.
 
In the domestic financial markets, the Korean won has depreciated considerably against the US dollar but appreciated significantly against the Japanese yen, in line with the US dollar’s strength globally and with the Japanese yen’s weakness due mainly to the expansion of the Bank of Japan’s quantitative and qualitative monetary easing. Stock prices have rebounded, after having fallen significantly due for example to concerns about the slowdown of the global economy and to outflows of foreigners’ securities investment funds. Long-term interest rates have declined.
 
Looking ahead, while supporting the recovery of economic growth, the Committee will conduct monetary policy so as to maintain price stability over a medium-term horizon and pay attention to financial stability. In this process it will closely monitor external risk factors such as shifts in major countries’ monetary policies, as well as the trends of household debt and of capital flows. 

Bank of Korea l Rida l rida@tradingeconomics.com
11/13/2014 6:44:58 PM


Recent Releases

South Korea Cuts Base Rate to Record Low at 2%
At its October 15th meeting, South Korean Monetary Policy Committee lowered the base rate by 25 basis points to 2.0 percent to boost the country’s economic growth. It is the second rate cut in the last three months, bringing the policy rate to a record low. Published on 2014-10-15

South Korea Keeps Base Rate Unchanged at 2.25%
At its September, 12th meeting, South Korean Monetary Policy Committee left the base rate unchanged at 2.25 percent, as it evaluates the effects of last month’s rate cut and government’s fiscal policies. Published on 2014-09-12


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-09-12 02:00 AM
Interest Rate Decision 
2.25% 2.25% 2.25% 2.25%
2014-10-15 02:00 AM
Interest Rate Decision 
2.0% 2.25% 2.0% 2.25%
2014-11-13 01:00 AM
Interest Rate Decision 
2.0% 2.0% 2.0% 2.0%
2014-12-11 01:00 AM
Interest Rate Decision 
2.0% 2%


South Korea Money Last Previous Highest Lowest Unit
Interest Rate 2.00 2.00 5.25 2.00 percent [+]
Interbank Rate 2.08 2.24 25.34 1.76 percent [+]
Money Supply M0 60055600.00 59154700.00 60055600.00 11200.00 KRW Million [+]
Money Supply M1 556716.00 549396.00 556716.00 260.40 KRW Billion [+]
Money Supply M2 2039282.20 2033780.80 2039282.20 590.60 KRW Billion [+]
Money Supply M3 2761046.60 2751375.90 2761046.60 57007.90 KRW Billion [+]
Foreign Exchange Reserves 363723.40 364406.70 368026.40 564.50 USD Million [+]
Loans to Private Sector 6397.00 4302.00 7695.00 -3462.00 KRW Billion [+]
Central Bank Balance Sheet 496806.00 485632.00 496806.00 310.00 KRW Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Nov/14 2.50 17.50 2.50 percent [+]
Brazil 11.25 Oct/14 11.00 45.00 7.25 percent [+]
Canada 1.00 Oct/14 1.00 16.00 0.25 percent [+]
China 5.60 Nov/14 6.00 10.98 5.31 percent [+]
Euro Area 0.05 Nov/14 0.05 4.75 0.05 percent [+]
France 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Germany 0.05 Nov/14 0.05 4.75 0.05 percent [+]
India 8.00 Oct/14 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Nov/14 7.50 12.75 5.75 percent [+]
Italy 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Japan 0.00 Nov/14 0.00 9.00 0.00 percent [+]
Mexico 3.00 Oct/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Russia 9.50 Oct/14 8.00 10.50 5.00 percent [+]
South Korea 2.00 Nov/14 2.00 5.25 2.00 percent [+]
Spain 0.05 Nov/14 0.05 4.75 0.05 percent [+]
Switzerland 0.00 Oct/14 0.00 3.50 0.00 percent [+]
Turkey 8.25 Nov/14 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Nov/14 0.50 17.00 0.50 percent [+]
United States 0.25 Oct/14 0.25 20.00 0.25 percent [+]