The Bank of Korea kept its base rate unchanged at 0.75%, as widely expected, during its October 2021 meeting following its first rate hike in nearly three years in August. Policymakers, however, said further tightening could come as soon as November, amid efforts to curb rising inflation and household debt in the country. Policymakers noted the economy has continued its sound recovery as exports and investment continued their robust trend while private consumption improved following rising vaccination rates as well as the execution of a supplementary budget. Regarding economic outlook, South Korea's GDP growth this year is projected to be around 4%, consistent with the forecast in August. Meantime, 2021 consumer price inflation is forecast to run at the mid-2% level for some time, exceeding the path projected in August, before declining somewhat. Core inflation is forecast to increase to around the upper-1% level. source: The Bank of Korea

Interest Rate in South Korea averaged 2.91 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 October of 2021.

Interest Rate in South Korea is expected to be 1.00 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 1.25 percent in 2022 and 1.50 percent in 2023, according to our econometric models.

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South Korea Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-07-15 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-08-26 01:00 AM 0.75% 0.5% 0.75% 0.75%
2021-10-12 01:00 AM 0.75% 0.75% 0.75% 0.75%
2021-11-25 01:00 AM 0.75% 1%


Related Last Previous Unit Reference
Interest Rate 0.75 0.75 percent Oct/21
Interbank Rate 1.05 1.05 percent Oct/21
Money Supply M1 1333808.10 1292550.90 KRW Billion Aug/21
Money Supply M0 147345000.00 146162500.00 KRW Million Aug/21
Money Supply M2 3507331.50 3437379.30 KRW Billion Aug/21
Money Supply M3 4786149.80 4744136.70 KRW Billion Aug/21
Foreign Exchange Reserves 463970.00 463930.00 USD Million Sep/21
Loans to Private Sector 10490045.00 10413465.00 KRW Hundred Million Sep/21
Lending Rate 1.75 1.75 percent Oct/21
Central Bank Balance Sheet 574187.90 562560.50 KRW Billion Aug/21
Foreign Stock Investment 1055887.80 999689.00 USD Million Jun/21

News Stream
South Korea Holds Rates, Flags Rate Hike in November
The Bank of Korea kept its base rate unchanged at 0.75%, as widely expected, during its October 2021 meeting following its first rate hike in nearly three years in August. Policymakers, however, said further tightening could come as soon as November, amid efforts to curb rising inflation and household debt. The board noted the economy has continued its sound recovery as exports and investment continued their robust trend while private consumption improved following rising vaccination rates as well as the execution of a supplementary budget. Regarding economic outlook, South Korea's GDP growth this year is projected to be around 4%, consistent with the forecast in August. Meantime, 2021 consumer price inflation is forecast to run at the mid-2% level for some time, exceeding the path projected in August, before declining somewhat. Core inflation is forecast to increase to around the upper-1% level.
2021-10-12
South Korea Raises Base Rate by 25 Bps to 0.75%
The Bank of Korea raised its base rate by 25 basis points to 0.75% during its August 2021 meeting, as widely expected, the first-rate hike in near three years and the first major Asian economy to tighten its monetary policy since the pandemic began. Policymakers said the economy is likely to continue its recovery as private consumption is forecast to improve gradually on the expansion of vaccinations and supplementary budget, while exports and investment are expected to sustain their buoyancy. 2021 GDP growth is projected to be around 4%, consistent with the forecast in May. Meantime, 2021 consumer price inflation will increase to the lower-2%, exceeding the May forecast of 1.8%. Core inflation is forecast to run at the lower-1% level. The board said it will gradually adjust the degree of policy accommodation as the economy is expected to continue its sound growth, despite uncertainties over the virus. The central bank has two rate decisions left for this year.
2021-08-26
South Korea Holds Rates, Signals Tightenings
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%.
2021-07-15

South Korea Interest Rate
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.