The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its July 2021 meeting, as widely expected, as the nation is battling against the fourth wave of COVID-19 cases. The central bank projected the economy to grow by 4% this year, consistent with the forecast in May, mainly supported by exports and investment as private consumption is expected to temporarily weaken, amid a surge in the coronavirus resurgence. While maintaining an accommodative stance of monetary policy, the board said it will judge whether it is appropriate to adjust the degree of accommodation while thoroughly assessing developments related to the pandemic, changes in the pace of growth and inflation, and the risk of a buildup of financial imbalances. The central bank has three rate decisions left for this year, the next one due on August 26th. Since last year, policymakers have slashed a total of 75 basis points to a record low of 0.5%.
. source: The Bank of Korea
Interest Rate in South Korea averaged 2.94 percent from 1999 until 2021, reaching an all time high of 5.25 percent in October of 2000 and a record low of 0.50 percent in May of 2020. This page provides - South Korea Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Korea Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2021.
Interest Rate in South Korea is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in South Korea to stand at 0.50 in 12 months time. In the long-term, the South Korea Interest Rate is projected to trend around 1.25 percent in 2022 and 1.50 percent in 2023, according to our econometric models.