South Korea Interest Rate 1999-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in South Korea was last recorded at 1.50 percent. Interest Rate in South Korea averaged 3.58 percent from 1999 until 2015, reaching an all time high of 5.25 percent in October of 2000 and a record low of 1.50 percent in June of 2015. Interest Rate in South Korea is reported by the The Bank of Korea.

      Forecast
South Korea Interest Rate
Please Paste this Code in your Website

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.75 5.25 1.50 1999 - 2015 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 Friday, July 3, 2015.

Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-04-09 02:00 AM 1.75% 1.75% 1.75% 1.75%
2015-05-15 02:00 AM 1.75% 1.75% 1.75% 1.75%
2015-06-11 02:00 AM Jun 1.5% 1.75% 1.5% 1.75%
2015-07-09 02:00 AM 1.5% 1.5%
2015-08-13 02:00 AM 1.5%
2015-09-11 02:00 AM 1.25%


Bank of Korea Cuts Rate to Fresh Record Low of 1.5%


The Bank of Korea decided to cut the base rate by 25 bps to fresh record low of 1.5 percent on June 11th, the second adjustment this year. Policymakers judged downside risks to the economy have expanded, mostly due to sluggish exports and to fears of MERS outbreak.

Excerpts from the statement by the Bank of Korea:

The Committee notes that the trend of decline in exports has accelerated and that consumption, which had been showing a recovery, appears to have contracted since the outbreak of Middle East Respiratory Syndrome (MERS). On the employment front, the unemployment rate has risen due mainly to an expansion in job search activities, but the employment-to-population ratio has also increased as the number of persons employed has grown. The Committee judges that the downside risks to the domestic growth path forecast in April have expanded, owing mostly to the sluggishness of exports and to the impacts of the MERS outbreak.
 
Consumer price inflation rose slightly from 0.4 percent the month before to 0.5 percent in May, due mainly to increases in prices of agricultural, livestock and fisheries products, and core inflation excluding agricultural and petroleum product prices also rose slightly to 2.1 percent, from 2.0 percent in April. Looking ahead the Committee forecasts that inflation will continue at a low level, due mainly to the effects of the low oil prices. In the housing market, the upward trends of sales and leasehold deposit prices have continued in both Seoul and its surrounding areas and the rest of the country.
 
In the domestic financial markets, influenced mostly by strengthened expectations of a policy rate hike by the US Federal Reserve, stock prices have fallen and the Korean won has depreciated against the US dollar. The won has fluctuated within a certain range against the Japanese yen. Long-term market interest rates have fallen back, after having risen in response mainly to interest rate movements in major countries and to domestic economic indicators. Bank household lending has sustained a trend of increase at a level substantially exceeding that of recent years, led by mortgage loans.
 
Looking ahead, while working to sustain the recovery of economic growth, the Committee will conduct monetary policy so as to maintain price stability over a medium-term horizon and pay greater attention to financial stability. In this process it will closely monitor the trend of increase in household debt and external risk factors such as shifts in major countries’ monetary policies, as well as the trends of capital flows.

Bank of Korea l Rida Husna l rida@tradingeconomics.com
6/11/2015 3:46:20 AM


Recent Releases

South Korea Monetary Policy Unchanged in May
South Korean Monetary Policy Committee decided to leave the base rate unchanged at 1.75 percent at its May 15th meeting for the third straight month. Policymakers forecast inflation will continue at a low level, due to low energy prices, and the economy will show a modest trend of recovery.
Published on 2015-05-15

Bank of Korea Keeps Base Rate at Record Low
South Korean Monetary Policy Committee decided to leave the base rate unchanged at 1.75 percent at its April 9th meeting, following a surprise rate cut last month. Policymakers judged the domestic demand has not clearly recovered while inflation is expected to be low, due to falling energy prices.
Published on 2015-04-09

Bank of Korea Cuts Rate to Record Low of 1.75%
The Bank of Korea unexpectedly decided to cut the base rate by 25 bps to record low of 1.75 percent on March 12th. It is the first adjustment since October 2014 supported by sluggish domestic demand and weak outlook of the economy.
Published on 2015-03-12

South Korea Monetary Policy Unchanged in February
South Korean Monetary Policy Committee decided to keep the base rate unchanged at 2 percent for the fourth consecutive month at its February 17th meeting. Policymakers judged the recovery of the domestic demand has not been strong and economic expectations remains weak.
Published on 2015-02-17


South Korea Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.75 5.25 1.50 percent [+]
Interbank Rate 1.65 1.73 25.34 1.65 percent [+]
Money Supply M0 68158600.00 67012800.00 68501700.00 11200.00 KRW Million [+]
Money Supply M1 619917.30 604157.40 619917.30 260.40 KRW Billion [+]
Money Supply M2 2157148.00 2133051.70 2157148.00 590.60 KRW Billion [+]
Money Supply M3 2948091.90 2920703.70 2948091.90 57007.90 KRW Billion [+]
Foreign Exchange Reserves 371505.60 369902.10 371505.60 564.50 USD Million [+]
Loans to Private Sector 7014603.00 6977767.00 7014603.00 2603700.00 KRW Hundred Million [+]
Central Bank Balance Sheet 486798.00 503180.00 503180.00 310.00 KRW Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Jun/15 2.00 17.50 2.00 percent [+]
Brazil 13.75 Jun/15 13.25 45.00 7.25 percent [+]
Canada 0.75 May/15 0.75 16.00 0.25 percent [+]
China 4.85 Jun/15 5.10 10.98 4.85 percent [+]
Euro Area 0.05 Jun/15 0.05 4.75 0.05 percent [+]
France 0.05 Jun/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jun/15 0.05 4.75 0.05 percent [+]
India 7.25 Jun/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Jun/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Jun/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Jun/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jun/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jun/15 0.05 4.75 0.05 percent [+]
Russia 11.50 Jun/15 12.50 17.00 5.00 percent [+]
South Korea 1.50 Jun/15 1.75 5.25 1.50 percent [+]
Spain 0.05 Jun/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jun/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Jun/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Jun/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jun/15 0.25 20.00 0.25 percent [+]