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

The benchmark interest rate in South Korea was last recorded at 2.25 percent. Interest Rate in South Korea averaged 3.67 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
2.25 2.50 5.25 2.00 1999 - 2014 Percent Monthly
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 Tuesday, September 2, 2014.


South Korea Cuts Interest Rate to 2.25%


At its August 14th meeting, South Korean Monetary Policy Committee lowered the base rate by 25 basis points to 2.25 percent to boost the economic growth. This was the first rate adjustment in fifteen months, bringing the policy rate to the same level as in November of 2010.

Excerpts from the statement by the Bank of Korea:

The Committee forecasts that the global economy will sustain its modest recovery going forward, centering around advanced economies, but judges that the possibility exists of its being affected by the changes in global financial market conditions stemming from the shift in the US Federal Reserve’s monetary policy stance, by the weakening of economic growth in some emerging market countries and by geopolitical risks.
 
In Korea, exports have maintained their buoyancy but the Committee judges that improvements in domestic demand, which had contracted due mainly to the impacts of the Sewol ferry accident, have been insufficient, and that the consumption and investment sentiments of economic agents also continue to show sluggishness. On the employment front, the scale of increase in the number of persons employed has expanded in line with 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, although its pace of narrowing will be moderate.
 
Consumer price inflation fell from 1.7 percent the month before to 1.6 percent in July, due mainly to increases in the extents of decline in the prices of agricultural and petroleum products. Core inflation excluding agricultural and petroleum product prices rose slightly to 2.2 percent, from 2.1 percent in June. The Committee forecasts that inflation will gradually rise, but judges that for the time being inflationary pressures will not be high. Housing prices in the country excluding Seoul and its surrounding areas showed a slight upward movement, while leasehold deposit prices both in Seoul and its surrounding areas and in the rest of the country continued their modest uptrends.
 
In the domestic financial markets, after having risen substantially owing chiefly to the government’s announcement of economic policies, stock prices have fallen back somewhat due for example to geopolitical risks. The Korean won has depreciated under the influence of the US dollar’s strength globally, and long-term market interest rates have fallen.
 
Looking ahead, 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 recovery of economic growth. In this process it will closely monitor external risk factors such as shifts in major countries’ monetary policies, changes in economic agents’ sentiment and movements of future economic indicators including the household debt trend, while observing the effects of this month’s Base Rate cut and the government’s economic policies.

Bank of Korea l Rida l rida@tradingeconomics.com
8/14/2014 8:44:26 AM


Recent Releases

Bank of Korea Holds Base Rate at 2.5%
At its July 10th, 2014 meeting, South Korean Monetary Policy Committee decided to maintain the base rate on hold at 2.50 percent for the fourteenth straight month, as the country continued to enjoy buoyant exports while inflationary pressures appear to be somewhat weaker than expected. The Committee also lowered growth outlook for 2014 to become 3.8 percent from the initial target 4 percent. Published on 2014-07-10

South Korea Monetary Policy Unchanged in June
At its June 12th, 2014 meeting, South Korean Monetary Policy Committee decided to hold the base rate on hold at 2.50 percent for the thirteenth straight month, as domestic demand has slackened somewhat due to the impact of the Seoul ferry accident and inflation is expected to remain low for the time being. Published on 2014-06-12


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-05-09 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-06-12 02:00 AM South Korea
Interest Rate Decision
Jun 2014 2.5% 2.5% 2.5% 2.5%
2014-07-10 02:00 AM South Korea
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-08-14 02:00 AM South Korea
Interest Rate Decision
2.25% 2.5% 2.25% 2.5%
2014-09-12 02:00 AM South Korea
Interest Rate Decision
2.25% 2.5%


Money Last Previous Highest Lowest Unit
Interest Rate 2.25 2.50 5.25 2.00 Percent [+]
Interbank Rate 2.49 2.48 25.34 1.76 Percent [+]
Money Supply M0 56919500.00 56941300.00 59421300.00 11200.00 KRW Million [+]
Money Supply M1 534235.70 525898.50 534235.70 260.40 KRW Billion [+]
Money Supply M2 1997547.10 1989680.00 1997547.10 590.60 KRW Billion [+]
Money Supply M3 2708000.40 2690401.10 2708000.40 57007.90 KRW Billion [+]
Foreign Exchange Reserves 368026.40 366545.50 368026.40 564.50 USD Million [+]
Loans to Private Sector 3057.00 3556.00 7695.00 -3462.00 KRW Billion [+]
Central Bank Balance Sheet 484143.00 474257.00 493810.00 310.00 KRW Billion [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Sep/14 2.50 17.50 2.50 Percent [+]
Brazil 11.00 Jul/14 11.00 45.00 7.25 Percent [+]
Canada 1.00 Jul/14 1.00 16.00 0.25 Percent [+]
China 6.00 Jul/14 6.00 10.98 5.31 Percent [+]
Euro Area 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
France 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
Germany 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
India 8.00 Aug/14 8.00 14.50 4.25 Percent [+]
Indonesia 7.50 Aug/14 7.50 12.75 5.75 Percent [+]
Italy 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
Japan 0.00 Aug/14 0.00 9.00 0.00 Percent [+]
Mexico 3.00 Jul/14 3.00 9.25 3.00 Percent [+]
Netherlands 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
Russia 8.00 Jul/14 7.50 10.50 5.00 Percent [+]
South Korea 2.25 Aug/14 2.50 5.25 2.00 Percent [+]
Spain 0.15 Aug/14 0.15 4.75 0.15 Percent [+]
Switzerland 0.00 Jul/14 0.00 3.50 0.00 Percent [+]
Turkey 8.25 Aug/14 8.25 500.00 4.50 Percent [+]
United Kingdom 0.50 Aug/14 0.50 17.00 0.50 Percent [+]
United States 0.25 Jul/14 0.25 20.00 0.25 Percent [+]





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