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

The benchmark interest rate in South Korea was last recorded at 1.75 percent. Interest Rate in South Korea averaged 3.61 percent from 1999 until 2015, reaching an all time high of 5.25 percent in October of 2000 and a record low of 1.75 percent in March of 2015. Interest Rate in South Korea is reported by the The Bank of Korea.

      Forecast    
South Korea Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
1.75 2.00 5.25 1.75 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 Thursday, March 26, 2015.


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.

Excerpts from the statement by the Bank of Korea:
 
Looking at the Korean economy, the Committee notes that exports have decreased, due mostly to declines in the unit prices for example of petroleum products, that domestic demand activities such as private consumption and facilities investment have exhibited sluggish movements, and that the sentiments of economic agents have also not clearly recovered. 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 domestic economy will show a modest trend of recovery going forward, although falling short of the originally forecast growth path. The period of continuation of the negative output gap will as a result also be longer than had been anticipated.
 
Consumer price inflation fell from 0.8% the month before to 0.5% in February, owing mainly to increases in the extents of decline in petroleum product prices and to the slower paces of increase in prices of industrial products other than petroleum. Core inflation excluding agricultural and petroleum product prices fell slightly to 2.3%, from 2.4% in January. Looking ahead, the Committee forecasts that, due mainly to the effects of the low oil prices, inflation will continue at a level lower than originally expected. In the housing market, the upward trends of sales prices accelerated slightly, while leasehold deposit prices continued their uptrend centering around Seoul and its surrounding areas.
 
In the domestic financial markets, after having risen on foreigners’ net buying of domestic stocks for example, stock prices have recently fallen under the influence mostly of declines in stock prices in major countries. The Korean won has depreciated against the US dollar, affected by the dollar’s strength globally and by the synchronization between movements of the won and the Japanese yen following the yen’s weakening, while it has fluctuated within a certain range against the yen. Long-term market interest rates had risen, but have since declined. Bank household lending has sustained its trend of increase at a level greatly exceeding that of recent years, led by mortgage loans.
 
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 international oil prices and shifts in major countries’ monetary policies, as well as developments related to the spare capacity in the domestic economy and the trends of household debt and capital flows.

Bank of Korea l Rida Husna l rida@tradingeconomics.com
3/12/2015 10:09:49 AM


Recent Releases

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

Bank of Korea Holds Rates at Record Low
South Korean Monetary Policy Committee left the base rate unchanged at 2 percent for the third consecutive month at its January 15th meeting. Policymakers judged the recovery in the domestic demand has been slow and the outlook for the economy remains weak. Published on 2015-01-15


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-01-15 01:00 AM
Interest Rate Decision 
2% 2% 2% 2%
2015-02-17 01:00 AM
Interest Rate Decision 
2% 2% 2% 2%
2015-03-12 01:00 AM
Interest Rate Decision 
1.75% 2% 2% 2%
2015-04-09 02:00 AM
Interest Rate Decision 
1.75% 1.75%
2015-05-15 02:00 AM
Interest Rate Decision 
1.75%
2015-06-11 02:00 AM
Interest Rate Decision  Jun
2.25%


South Korea Money Last Previous Highest Lowest Unit
Interest Rate 1.75 2.00 5.25 1.75 percent [+]
Interbank Rate 1.99 1.99 25.34 1.76 percent [+]
Money Supply M0 64951000.00 64438500.00 64951000.00 11200.00 KRW Million [+]
Money Supply M1 112510.00 175508.00 574266.30 260.40 KRW Billion [+]
Money Supply M2 98082.00 131043.00 2092001.10 0.00 KRW Billion [+]
Money Supply M3 2849505.50 2831860.10 2849505.50 57007.90 KRW Billion [+]
Foreign Exchange Reserves 362370.10 362186.20 368026.40 564.50 USD Million [+]
Loans to Private Sector 3385.00 417.00 7695.00 -3462.00 KRW Billion [+]
Central Bank Balance Sheet 482453.00 485799.00 496806.00 310.00 KRW Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Mar/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Mar/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Mar/15 0.05 4.75 0.05 percent [+]
France 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Mar/15 0.05 4.75 0.05 percent [+]
India 7.50 Mar/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Mar/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Mar/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Mar/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Russia 14.00 Mar/15 15.00 17.00 5.00 percent [+]
South Korea 1.75 Mar/15 2.00 5.25 1.75 percent [+]
Spain 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Mar/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Mar/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Mar/15 0.50 17.00 0.50 percent [+]
United States 0.25 Mar/15 0.25 20.00 0.25 percent [+]