Bank of Korea raised its base rate by 25 bps to 1.50%, the highest level since August 2019, during its April 2022 meeting in an unexpected move as it seeks to curb surging inflation, which is now double the bank's 2% target. The board forecast that the CPI will stay in the 4% range for some time, and run substantially above the February forecast of 3.1% for this year. Core inflation is forecast to remain around 3% for a considerable time. Meantime, the 2022 GDP growth projection will be below the February forecast of 3%, affected by the Ukraine crisis. The board added it will adjust the degree of policy accommodation as the economy continues its recovery, despite headwinds from home and abroad. Policymaker reiterated they will thoroughly assessing risks stemming from COVID-19, financial imbalances, monetary policy changes in major countries, and geopolitical risks.Thursday's rate decision was taken without a governor as former chief Lee Ju-yeol's term ended in March. source: The Bank of Korea
Interest Rate in South Korea averaged 2.88 percent from 1999 until 2022, 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 May of 2022.
Interest Rate in South Korea is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Korea Interest Rate is projected to trend around 2.50 percent in 2023, according to our econometric models.